Exports shrink again, trade deficit narrows as imports fall faster

• According to the data released by the commerce department recently, exports declined 2.8 per cent year-on-year to $33.9 billion in November
• Imports dipped 4.3 per cent to $54.5 billion, leading to the narrowing of the trade deficit at $20.6 billion.

Trade deficit

• A trade deficit is an amount by which the cost of a country's imports exceeds its exports.
• It's one way of measuring international trade, and it's also called a negative balance of trade.
• A trade deficit can be calculated by subtracting the total value of a country's exports from the total value of its imports.

Prelims Takeaway

• Balance of Payment
• Trade Deficit