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 ?
67 million in August this year thus the trade deficit expanded from $104.
It's important for our elected leaders to keep the impact of the trade deficit in mind when considering agreements like the TPP and its impact on workers.
While the trade deficit narrowed in March, economists said the improvement will not be enough to keep the government from revising its first quarter growth estimate down into negative territory.
However, economists warned that trade deficit figure would not remain at the September level as demand for gold jewellery normally peaks in the festive season.
The foreign trade deficit continued to widen on an annual basis in May due mainly to the surge in net gold imports and the stronger economy.
Rao on Wednesday said that the widening trade deficit is a worrying aspect for the Indian economy.
Trade Minister Gita Wirjawan said the country's trade deficit could widen and reach billions of US dollars this year with growing oil and gas imports.
According to Credit Suisse (NYSE: CS), the increasing trade deficit in India could prompt the Indian government to take remedial action.
On the basis of provisional data for September the trade deficit shrank by 10.
demand for crude oil and petroleum products in April helped shrink the nation's balance-of-trade deficit from the previous month, the Commerce Department said Friday, but the trade deficit with China worsened.
According to the latest data, the trade deficit in the first nine months is close to two billion euros.