The difference in value between a country's total exports and total imports of goods and services over a specific period. A trade surplus exists when exports exceed imports, while a trade deficit occurs when imports surpass exports. The balance of trade is a key component of the current account within the broader balance of payments and is closely watched by forex traders because persistent surpluses or deficits can significantly influence currency valuations.
Example
“Germany reported a trade surplus of €22 billion in March, boosting the euro as markets interpreted the data as a sign of strong external demand for European goods.”