ARSENAL > Trade balance

Trade balance

Macro
Definition
A country's exports minus imports of goods and services. Persistent deficits of -$60B to -$100B per month are normal for the US — a reserve-currency country with strong domestic demand and capital inflows.

Sharp narrowing often coincides with recessions (demand drops faster than supply); sharp widening can pressure the dollar. Modest standalone predictive value, but a useful cross-check on US consumption health.
Formula
Trade balance = Exports − Imports
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