On the other hand, for countries with limited growth opportunities, it is better to invest abroad and earn higher returns. In these circumstances, countries with abundant investment opportunities are more likely to see investment exceed savings, resulting in a current account deficit. Meanwhile, countries with limited growth opportunities see savings exceed investment, hence a current account surplus.
Optimal saving-investment balances and associated current account balances differ from country to country, depending  4  on individual circumstances. What we need to determine is whether the actual savinginvestment balances and current account balances have diverged from the optimal levels that reflect economic fundamentals.