One of the indicators that help us determine the health of a country’s economy is the trade deficit, which is obtained from the research and comparison of data on imports and exports made by a nation at a given time, this comparison is known as the trade balance. Two scenarios can result from this operation:
- Trade surplus: when exports are greater than the purchases made to other countries, therefore income from import collections is higher, being very favorable for the development and sustenance of the economy.
- Trade deficit: being the case where imports exceed exports, having as one of the consequences; high levels of foreign debt.
You will be surprised by the data, since by 2021 one of the countries with the largest trade deficit was the United States with 999,883.3 billion euros, along with the United Kingdom, France, India and Spain; the latter having as a result by 2022 a trade balance of -71,358.5 million euros.
Undoubtedly, the greatest responsibility for maintaining a positive balance of trade falls on the decisions and administration of the current government of each country. In addition, maintaining low levels of domestic production may force the nation to import finished products or raw materials to be used as inputs.
