Trade Deficit
Also called: trade balance, trade surplus, net exports
A trade deficit means a country imports more goods and services than it exports. It is an accounting identity, not a verdict: a deficit on trade must be matched by a surplus on the capital account, meaning foreigners are investing the difference back. That's why persistent US deficits coexist with the dollar's reserve status — the world wants dollar assets, and acquiring them requires selling more goods than it buys.
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