trade deficit

[treyd def-uh-sit]

noun

Economics.

1. a negative balance of trade, or the amount by which the value of a country’s imports exceeds that of its exports.

trade deficit

1. The condition that exists when the value of what a country imports exceeds the value of what it exports; also called an unfavorable balance of trade.

Trade deficits, because they imply that capital is leaving a country, can cause higher interest rates.

Word History and Origins

Origin of trade deficit¹

First recorded in 1855–60

Related Words

• balance of trade 
• bop 
• trade balance