Trade deficit

Definition

A trade deficit occurs when a country's imports of goods and services exceed its exports over a certain period. It indicates that a country is spending more on foreign products than it is earning from selling its own goods abroad.

Related terms

Balance of Trade:

The difference between the monetary value of a nation's exports and imports over a certain time period.

Exports:

Goods or services sent from one country to be sold in another.

Imports:

Goods or services brought into one country from another for sale