The Balance of Trade, which is part of the current account balance, records the balance of imports and exports of goods in a country over the course of a year. The trade balance, therefore, is the difference between receipts and payments resulting from trade with foreign countries.
Its balance, which is the result of subtracting imports from exports, will mean:
- Deficit: If the sum of imports exceeds the sum of exports.
- Surplus: When total exports exceed total imports.
Related terms