what is current account deficit?

Answer 1

The balance of payment account contains two parts, current account and capital account. The current account consists of Goods and services traded, expatriation by locals staying abroad and inviscibles like travelling costs etc;. When a country has more credit side than debit side for these accounts for example when you export more of cars and import less of cars that will give more credit side in goods export and less debit side. Like you account for all the above mentioned categories and if you have more credit side than debit side then you have balance of payment surplus and vice versa when credit side is lower and debit side is higher you have current account deficit.
Former Consultant to Federal Reserve USA.

Answer 2

A current account deficit occurs when the amount of imports into a country exceeds the amount of exports out of a country.

For example, say a country imported $10 billion worth of goods and services while exporting $8 billion worth of goods and services. The country would have a current account deficit to the magnitude of $2 billion.