trade deficit

American  

[treyd def-uh-sit] / ˈtreɪd ˌdɛf ə sɪt /

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.

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trade deficit Cultural  

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.

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Discover More

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

Etymology

Origin of trade deficit

First recorded in 1855–60

Example Sentences

He wants to reduce the US trade deficit - the gap between the value of goods it buys from other countries and those it sells to them.

From BBC

“The biggest contribution to growth is coming from an unexpected collapse in the trade deficit,” said chief economist Chris Low of FHN Financial.

From MarketWatch

The European Union’s trade deficit with China has nearly doubled since before the pandemic, reflecting eroding competitiveness in advanced industrial goods.

From Barron's

The Atlanta Fed now pegs real U.S. gross domestic product growth above 5% for the fourth quarter, according to its GDP Now model, likely reflecting a decline in the U.S. trade deficit, Smart notes.

From Barron's

The Atlanta Fed now pegs real U.S. gross domestic product growth above 5% for the fourth quarter, according to its GDP Now model, likely reflecting a decline in the U.S. trade deficit, Smart notes.

From Barron's

Related Words

• balance of trade
• bop
• trade balance