A trade surplus occurs when a country's exports of goods and services exceed its imports, resulting in a positive balance of trade. In other words, it means that a country is selling more to other countries than it is buying from them.
Related terms
Trade Deficit: A trade deficit is the opposite of a trade surplus. It happens when a country imports more goods and services than it exports, resulting in a negative balance of trade.
Exports: Exports are products or services produced within a country's borders and sold to other countries.
Imports: Imports refer to products or services that are brought into one country from another country for consumption or resale.