Exports rise and trade deficit

Subject: Economy

Context:

After contracting for six months in a row, the country’s exports grew by 5.27 per cent year-on-year to $27.4 billion in September, and the trade deficit narrowed to a three-month low of $2.91 billion, as per the Commerce Ministry data

Concept:

• A trade deficit is an economic condition that occurs when a country is importing more goods than it is exporting.
• The trade deficit is calculated by taking the value of goods being imported and subtracting it by the value of goods being exported.