Trade glossary · measurement
Trade balance
A country's exports minus its imports. Positive is a surplus; negative is a deficit.
Trade balance can be computed for goods only (the merchandise trade balance shown on World Trade Flows), services only, or goods + services combined. National statistical agencies typically publish all three. A merchandise deficit can coexist with a services surplus, as is the case for the United States, where large goods imports are partially offset by services exports in finance, IT, and licensing.
Examples
- China runs the world's largest goods surplus (~$823B in 2023).
- The United States runs the world's largest goods deficit (~$1.1T in 2023).
Related terms
Trade surplus
Exports exceed imports. The country sells more goods abroad than it buys.
Trade deficit
Imports exceed exports. The country buys more goods from abroad than it sells.
Current account
Balance of payments component covering goods, services, primary income (wages and investment income), and secondary income (transfers). Trade balance is one part of the current account.
Balance of payments
A country's accounting record of all economic transactions with the rest of the world, split into current account and capital/financial account.