What does a deficit in current account of BOP indicate?

A deficit in current account of BOP indicates that spending abroad is more limn receipts from sale to rest of the world. Thus it shows that payments are more than receipts reflecting unfavourable balance of payment in a year. Like an individual who finances his excess expenditure by selling his assets or by borrowing, similarly, a country having deficit in its current account must finance it by selling assets or by borrowing abroad. Thus a current account deficit is financed by a capital account surplus (i.e., by net capital inflow from ROW).