On the current account balance of payments.
Primary income
Primary income is defined as earnings arising from the provision of a factor of production:
labour, financial assets, land, and natural resources
This includes
- Income from interest, profits, and dividends (generated from foreign investment).
- Compensation of employees
- Taxes and subsidies on products and production
(e.g., sales tax or value added,
Secondary income
Secondary income is defined as the redistribution of income through current transfers. By
governments, multinational organisations or charities.
This includes spending and transfers on foreign overseas aid, and payment to multinational bodies.
Long-term remittances
IMF Details on secondary income
Further reading