What is the trade balance?
The trade balance is goods exports minus goods imports during a period.
Definition, calculation and mechanism
Exports above imports yield a goods surplus; the reverse is a deficit. Services and income items enter the broader current account. Nominal values, volumes and prices can tell different stories.
Interpretation, examples and limits
A deficit alone does not prove failure, nor a surplus prosperity. Imported machinery for investment differs from consumer imports. Consider exchange rates and global demand.
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