Trade Deficits

A trade deficit occurs when a country imports more goods and services than it exports. This means it spends more money on buying foreign products than it earns from selling its own abroad. While a trade deficit can indicate strong consumer demand and access to diverse products, it also suggests the country is borrowing or using up its reserves to pay for imports. It's not inherently bad, but sustained deficits might raise concerns about long-term economic health and competitiveness. Ultimately, a trade deficit reflects the balance of international buying and selling activities.