Trade and Investment

What is a trade deficit and how does it affect the economy?

A trade deficit occurs when a country imports more than it exports. Image: Unsplash/Paul Teysen

Simon Torkington

Senior Writer, Formative Content

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A chart showing the US trade deficit from 1960 to 2015.
The US trade deficit has persisted since the mid-1970s. Image: Federal Reserve Bank of St Louis

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