Framework for Sustainability of the Current Account

‘A’ at time period t is defined as the sum of non-interest non-energy current account-to-GDP ratio plus FDI-to-GDP ratio, plus EU grants-to-GDP ratio, minus energy imports-to-GDP ratio.
We impose the sustainability condition that the discounted value of debt/GDP ratio at the end of period 2016 be less than the actual debt/GDP ratio in 2006. If it does not, we say current account is not sustainable.

‘A’ at time period t is defined as the sum of non-interest non-energy current account-to-GDP ratio plus FDI-to-GDP ratio, plus EU grants-to-GDP ratio, minus energy imports-to-GDP ratio.