Work out trade balance instantly with clear inputs, formula shown and shareable results.
The merchandise trade balance often looks alarming in isolation because services are excluded. Adding net services exports gives the overall trade balance, and expressing it as a share of GDP is what makes it comparable across countries and across years.
Merchandise balance
Merchandise balance = Exports - Imports
Overall balance
Overall = Merchandise balance + Net services exports
Coverage ratio
Coverage % = Exports / Imports x 100
Indicative estimate only. Fees, entitlements, limits and formulas vary by jurisdiction, statute, policy wording and the facts of the case. This is not legal, tax, insurance or financial advice — confirm with a qualified professional or the relevant authority.
Not inherently. It reflects a country investing more than it saves, which can be productive. It becomes a problem when it is financed by short-term volatile capital.
The current account adds primary income (investment income) and secondary income (remittances) to the trade balance.