Definition

Noun: An economic condition where the monetary value of a country's imports of goods and services exceeds the monetary value of its exports over a specific period. It represents a negative balance of trade.

Usage

A "trade deficit" is a key macroeconomic indicator. It is typically discussed in the context of national economies, international trade policies, and economic health. The term is used with verbs like have, run, reduce, widen, and narrow.

Examples

• The country has been running a persistent trade deficit for the last decade.
• Economists are concerned that the growing trade deficit could weaken the national currency.
• The government introduced new policies aimed at reducing the trade deficit with its major trading partners.
• A large trade deficit is not inherently negative if it finances productive investment.

Advanced Usage

• "to run a trade deficit": To consistently have imports greater than exports.
  • The nation continues to run a substantial trade deficit despite export promotion efforts.
• "trade deficit widens/narrows": Describes the deficit increasing or decreasing in size.
  • The monthly report showed the trade deficit widened by 5% last quarter.

Variants and Related Words

• Trade surplus (n): The opposite condition, where the value of exports exceeds the value of imports.
  • A trade surplus often leads to an accumulation of foreign currency reserves.
• Balance of trade (n): The broader term for the difference between a nation's exports and imports, of which a trade deficit is one possible outcome.
  • The overall balance of trade remains in deficit, though the services sector shows a surplus.

Synonyms

• Trade gap: An informal synonym often used in journalism and economic reports.
  • The widening trade gap is putting pressure on policymakers.

Antonyms

• Trade surplus: An excess of exports over imports.

Noun

1. an excess of imports over exports