trade deficit

Meaning

1. 1nouncountablefinance

   A situation in which a country buys more goods and services from abroad than it sells abroad over a period of time.

   Grammar: Usually with 'a' or 'the': the country ran a trade deficit.

   Patterns

   • a trade deficit with a country
   • run a trade deficit

   The country ran a large trade deficit last year because of expensive oil imports.

   Economists worry that a growing trade deficit could weaken the currency.

   The government hopes cheaper exports will narrow the trade deficit with its neighbors.

Word forms

Common combinations

run a trade deficit

Many wealthy nations run a trade deficit for years.

narrow the trade deficit

A weaker currency helped narrow the trade deficit.

a widening trade deficit

A widening trade deficit alarmed investors.

trade deficit with China

The trade deficit with China was the focus of the talks.

record trade deficit

The nation posted a record trade deficit in March.

Synonyms and how they differ

trade gap

Trade gap is a more casual, headline-friendly phrase for the same idea, while trade deficit sounds more technical.

negative trade balance

Negative trade balance describes the same situation but frames it as a number below zero, so it appears more in statistical writing.

external deficit

External deficit is broader because it can include income and transfers as well as goods and services.

Opposites

Word family

deficit noun

an amount by which something falls short

trade surplus noun

exports exceeding imports

trade balance noun

the difference between exports and imports

deficient adjective

not having enough of something

Commonly confused: trade deficit or budget deficit?

Practice

Make it your own

Write a sentence using “trade deficit”, then check it and compare it with the examples above.

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