trade deficit


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Unfavorable Balance of Trade

The difference between the value of a country's exports and the value of its imports such that imports exceed exports. Analysts disagree on the impact, if any, of an unfavorable balance of trade on the economy. Some economists believe that an unfavorable balance of trade, especially if sustained, causes unemployment and lowers GDP growth. Others believe that the balance of trade has little impact, because the more international trade occurs, the more likely it is that foreign companies will invest in the home country, negating any negative effects. An unfavorable balance of trade is also called a trade deficit.

trade deficit

The amount of goods and services that a country imports that is in excess of the amount of goods and services it exports. Large trade deficits may result in unemployment and a reduction in economic growth in the country with the deficit. Compare trade surplus.
References in periodicals archive ?
The major reason for the increase in the trade deficit is the increasing global fuel prices.
The trade deficit in the first six months was equal to 70% of the government's annual target of $25.
The government seems failed in controlling soaring trade deficit of the country despite announcing measures to reduce imports and increasing exports.
In other words, instead of reducing the trade deficit as envisaged by the IMF, the decline in the value of the dinar has, on the contrary, widened this trade deficit.
For April, Bulgaria recorded a trade deficit of BGN 379.
The trade deficit is an economic time bomb waiting to go off.
The trade deficit is the short-fall between exports and imports.
8 percent rise in imports in January-July, to 24 billion dinars, had helped push the trade deficit higher from 6.
trade deficit narrowed in March as exports rebounded to the second highest level on record, led by strong gains in sales of aircraft, autos and farm goods.
Summary: Industry Minister Hussein Hajj Hasan said Thursday that Lebanon must reduce its trade deficit, even if doing so requires adopting protectionist policies.
The US trade deficit increased in December after hitting a four-year low in November.
trade deficit of goods and services edged down in October as the growth of exports outpaced that of imports, reported the Commerce Department Wednesday.