Comparing current account balances for improvement

Steps:

• Identify each component's balance for 2011 and 2012 from the table.
• Calculate the change for each: subtract 2011 value from 2012 value.
• Improvement occurs if the 2012 balance is higher (more positive or less negative) than 2011.
• Select the component with the positive change.

Why D is correct:

• Balance of secondary income (transfers like remittances) rose from -10.5 in 2011 to -8.2 in 2012, per balance of payments definitions, indicating a smaller deficit.

Why the others are wrong:

• A. Balance of goods worsened from 4.5 surplus to 2.1 surplus.
• B. Balance of services deteriorated from -12.3 to -13.8 deficit.
• C. Balance of primary income declined from 20.1 surplus to 18.7 surplus.

Final answer: D