• Print
  • Email

Economic Perspectives, Vol. 31, 4th, 2007
Understanding the Evolution of Trade Deficits: Trade Elasticities of Industrialized Countries
In 2006, Americans bought $1,928 billion of goods and services produced in foreign countries. In the same year, American sales of goods and services to foreigners amounted to only $1,304 billion. The difference between American exports and imports of $624 billion is known as the trade deficit. When this number is positive—that is, when the U.S. sells more to foreign countries than it buys—it is called a trade surplus. More generally, the difference between the value of a country’s exports and imports is known as the trade balance. Over the past several years, the U.S. trade deficit has attracted a great deal of attention in the popular press and among policymakers in Washington, DC. Why is there so much interest in the trade deficit?
Having trouble accessing something on this page? Please send us an email and we will get back to you as quickly as we can.

Federal Reserve Bank of Chicago, 230 South LaSalle Street, Chicago, Illinois 60604-1413, USA. Tel. (312) 322-5322

Copyright © 2023. All rights reserved.

Please review our Privacy Policy | Legal Notices