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. Compare trade surplus ( def ).

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 .

Notes

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

Example Sentences

Indeed, the rapid growth in international tourism has been a key factor in bringing down the trade deficit in recent years.

From The Daily Beast

As a result, the trade deficit with China fell 12.4 percent from May to $26.6 billion.

From The Daily Beast

The upshot is that the trade deficit, $702 billion in 2008, is shrinking—in real terms and as a percentage of the economy.

From The Daily Beast

There was a second potentially fatal deficit that would require us to borrow from foreigners as well: the trade deficit.

From The Daily Beast

Last year the trade deficit was $534 billion, down by nearly a quarter from 2008.

From The Daily Beast

They show a lower volume of trade and a smaller trade deficit.

From Project Gutenberg

The cumulative trade deficit at the end of 1970 amounted to about 5.1 billion lei—the equivalent of about US$850 million.

From Project Gutenberg

The annual trade deficit in 1967 and 1968 was about 200 million leks.

From Project Gutenberg

For that period the overall trade deficit amounted to 278 million leva.

From Project Gutenberg

Related Words

• balance of trade
• bop
• trade balance