Balance of trade

Balance of trade figures, also called net exports (NX), are the sum of the money gained by a given economy by selling exports, minus the cost of buying imports. They form part of the balance of payments, which also includes other transactions such as the international investment position.

Debate about the American trade deficit

The United States has posted a rising trade deficit since its last surplus during its recession in 1991. Its persistence has been attributed to the dollar's role as a reserve currency, continued growth in the US economy, and the continued high demand for American investment assets. The decline in manufacturing in the United States has also affected the trade deficit.

Related Topics:
1991 - Reserve currency

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