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General TradingD
Deficit
A deficit occurs when expenditures exceed revenues over a given period. In economics, it commonly refers to a budget deficit (government spending exceeds tax revenue), trade deficit (imports exceed exports), or current account deficit, all of which can affect currency valuations and market sentiment.
Example
“The US trade deficit widened to $80 billion in March, putting downward pressure on the dollar as imports continued to outpace exports.”