Key points
- Deficit means imports exceed exports.
- Affects GDP calculation and currency values.
- US runs persistent trade deficits.
Example
A narrowing deficit from $80B to $65B in a quarter can add about 0.5-1.0 percentage points to annualized GDP growth.
In history
The US goods and services deficit hit a record of about $107 billion in March 2022 as imports surged.
Related terms