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What does it mean if net exports are negative?

In: Economics [Edit categories]

Answer:

Net Exports (X-I) equal Exports (X) minus Imports (I). If Net Exports are negative ( X - I < 0 ) it implies that Imports must be larger than Exports. The country is importing more than it is exporting. This is also known as a Trade Deficit or a Commercial Deficit.

First answer by ID1661568324. Last edit by Ricardo Fuentes-Ramirez. Contributor trust: 0 [recommend contributor ]. Question popularity: 2 [recommend question].

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