What does a deficit in capital account reflect for a domestic country in the international market? A deficit in capital account shows that more money is coming into the country when compared to what it is spending. A deficit in capital account shows that more money is flowing out of the country when compared to what it is receiving. A deficit in capital account shows the net deficit in the country's balance of payment irrespective of the current account performance. The capital account is always balanced, so there can never be an economic condition that will create a deficit. The deficit in the capital account pertains to more investment from the rest of the world than it does to the domestic country