Balance of trade

Balance of trade is the difference between the monetary value of a nation's exports and imports of goods over a certain time period.^[1] Sometimes, trade in services is also included in the balance of trade but the official IMF definition only considers goods.^[2] The balance of trade measures a flow variable of exports and imports over a given period of time. The notion of the balance of trade does not mean that exports and imports are "in balance" with each other.

If a country exports a greater value than it imports, it has a trade surplus or positive trade balance, and conversely, if a country imports a greater value than it exports, it has a trade deficit or negative trade balance. As of 2016, about 60 out of 200 countries have a trade surplus. The idea that a trade deficit is detrimental to a nation’s economy is often rejected by modern trade experts and economists.^[3][4][5][6]