GlossaryEN1 min readUpdated: Jun 26, 2026
Balance of Trade
Unlike the balance of payments, which covers all economic transactions between a country and the rest of the world, the balance of trade measures only the difference between merchandise exports and imports over a given period.
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Source: https://www.investopedia.com/terms/b/balanceoftrade.asp
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Definition & Explanation
Unlike the balance of payments, which covers all economic transactions between a country and the rest of the world, the balance of trade measures only the difference between merchandise exports and imports over a given period. When exports exceed imports, the result is a trade surplus; when imports dominate, a deficit. For customs authorities, exporters, and logistics planners, the figure serves as an early indicator of cargo volumes and economic competitiveness. A persistent surplus may signal strong export industries; a structural deficit points to high import dependency—both shape freight demand and influence the terms of trade agreements. Services are excluded from the balance of trade and recorded separately in the services account.
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