What Is a Net Export?

When exports are greater than imports, this difference is called a surplus; when net exports are negative, it is called a deficit. The trade balance, also known as the net export and trade balance, refers to the difference between the total value of a country's exports and the value of its imports in a certain period of time (such as one year, half a year, one quarter, one month). For convenience in economics, it is often replaced by the NX (Net Exports) symbol. When the total value of exports is equal to the value of imports, it is called "trade balance".

Net exports

net

Affect a country

Throughout the boom cycle, the trade balance has shown different performance. During the period of export-oriented economic expansion (such as the petrochemical industry and industrial countries in the early stages of industrialization), the trade balance improved and improved; while domestic demand-driven economic expansion (such as the United States and Australia), the trade balance worsened.

Economies with strong GDP growth, such as the United States, Britain, Australia, and Hong Kong, have trade deficits. Canada, Japan, Germany and other developed countries and China in developing countries have trade surpluses. Usually countries with high savings rates accompany trade surpluses, and the United States with negative savings rates has relatively high trade deficits.