Tag Archives: balance of payments

Trade deficit

A trade deficit represents an outflow of domestic currency to foreign markets. Trade deficit or surplus is derived from Balance of payments which keeps an account of both current and capital account transactions.

The Other side of the Trade Deficit

Trade deficit in its simplest form is the value of goods and services exported minus the value of goods and services imported. United States Current Account balance as of 1st quarter 2013 is at -$106.1 billion which is approximately 4% worse than the 4th quarter 2012.