African current account deficits linked to growth, savings, and aid flows.
The study looked at current account deficits in Africa to see if they were too high compared to what is expected. They found that the deficits are not very long-lasting and are connected to the country's economic growth. The deficits are also related to how much money the government (and private sector) saves, which means that cutting spending could help. Aid money and changes in currency value also play a role in the deficits. Overall, the deficits are higher than they should be by about 3 percent of the country's income.