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Economics vocabulary · Trade and Exchange Rates

Trade balance

Meaning in economics, with examples

nounCommon term

In economics, trade balance means: The value of a country's exports minus the value of its imports over a period; it is a surplus if exports are higher and a deficit if imports are higher.

In Turkish: dış ticaret dengesi, ticaret dengesi

How it is used

Also called the balance of trade. It usually refers to goods only; adding services gives the balance of goods and services. The trade balance improves, worsens or swings into surplus, and it is a large part of the current account.

Example sentences

  1. The trade balance improved as energy imports became cheaper.

  2. A weaker currency does not always improve the trade balance quickly.

Common collocations

  • the trade balance improved
  • balance of trade
  • goods trade balance
  • trade balance data
  • trade deficitThe gap that appears when the value of a country's imports of goods, and sometimes services, is greater than the value of its exports over a period.
  • exportA good or service sold to buyers in another country; as a verb, to sell goods or services abroad.
  • importA good or service bought from producers in another country; as a verb, to bring goods or services in from abroad.
  • current account deficitA shortfall that arises when a country pays more to the rest of the world for goods, services, income and transfers than it receives.
  • balance of paymentsA record of all money flows between a country and the rest of the world over a period, divided into the current account and the capital and financial account.

More terms: Trade and Exchange Rates

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This page explains English vocabulary for learners. It is not financial advice.