The capital account is a part of a country’s balance of payments. It records the movement of capital assets between countries.

Key examples of these transactions include:

• Debt forgiveness: When a country cancels another country’s debt.
• Migrant transfers: Financial assets moved by individuals when they relocate to a new country.
• Non-produced, non-financial assets: The sale of items such as natural resources or intellectual property.

In most developed countries, the capital account is much smaller than the current account and the financial account. By definition, the sum of all three accounts should equal zero.