TradeAlmanac
Sign in

Trade balance

The difference between the value of goods exported and goods imported over a period.

How to read the number

A durable export surplus creates a standing inflow of foreign currency and supports the exchange rate — provided that currency has a way of coming home.

When the metric lies

Goods trade is not the whole current account: services, investment income and transfers are capable of reversing the final sign.

Also known as: merchandise trade balance

Related terms