Trade Deficit

A trade deficit occurs when a country imports more goods and services than it exports. This means that the value of what it buys from other countries exceeds the value of what it sells abroad. While a trade deficit isn't inherently bad, as it can indicate a strong economy and consumer spending, it may raise concerns about long-term economic health, as it could lead to higher national debt or reliance on foreign products. Essentially, it's a measure of how much more a country spends on foreign trade than it earns from its own exports.