trade surplus

Meaning

1. 1nouncountablefinance

   The amount by which the value of what a country sells abroad is greater than the value of what it buys from abroad.

   Grammar: Often singular with 'a' or 'the': the country ran a trade surplus.

   Patterns

   • run a trade surplus
   • a trade surplus with a country

   Germany often runs a large trade surplus because its exports are strong.

   The country's trade surplus grew last year as demand for its cars rose.

   A trade surplus can strengthen a country's currency.

Word forms

Common combinations

run a trade surplus

The country has run a trade surplus for ten years.

record trade surplus

Exports pushed the nation to a record trade surplus.

trade surplus with a country

China has a trade surplus with many nations.

narrow the trade surplus

Higher oil prices narrowed the trade surplus.

large trade surplus

A large trade surplus is not always a sign of a healthy economy.

Synonyms and how they differ

export surplus

This says the same thing but stresses exports; trade surplus is the more common phrase in news.

favorable balance of trade

This is an older and more formal phrase that sounds like praise, while trade surplus is neutral.

current account surplus

This is wider, because it also counts income and transfers, not just goods and services.

Opposites

Word family

surplus noun

an amount left over

trade noun

buying and selling between people or countries

trade deficit noun

when imports exceed exports

trade balance noun

the difference between exports and imports

Commonly confused: trade surplus or budget surplus?

Practice

Make it your own

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

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