Trade Balances around the World
Tutor2u Economics, February 2009
Trade balances
• One feature of the world economy is
the persistent and large scale of trade
imbalances
• Some countries have huge surpluses
• Others experience deficits every year
• Trade imbalances are one factor
behind the resurgence of ‘protectionist’
sentiment
• And they have consequences for
growth, jobs and living standards
Global Exports of Goods and Services
14
14
13
13
12
12
11
11
10
10
9
9
8
8
7
7
6
6
5
5
4
4
90
91
92
93
94
95
96
97
98
99
00
01
02
03
04
05
06
07
thousand billions
USD (thousand billions)
value of world trade in US dollars, at constant 2000 prices
WorldRealtrade
08
Source: Reuters EcoWin
US Dollars (thousand billions)
Quarterly value of world trade
4.5
4.5
4.0
4.0
3.5
3.5
3.0
3.0
2.5
2.5
2.0
2.0
1.5
1.5
1.0
1.0
0.5
0.5
90
91
92
93
94
95
96
97
98
Export, EXPORTS,F.O.B. US Dollars
99
00
01
02
03
04
05
06
07
thousand billions
Quarterly Value of World Trade
08
Imports, IMPORTS,C.I.F.
Source: Reuters EcoWin
Components of the UK Balance of Payments
Annual balances for
each component, £ billion
The UK Current
Account
50
25
50
Investment income
0
0
Transfers
Current account
-25
-50
-25
-50
Trade in Goods
-75
-75
-100
-100
97
98
99
00
01
02
billions
£ Billion (billions)
25
Trade in Services
03
04
05
06
07
Source: Reuters EcoWin
UK Balance of Trade in Goods and Services
adjusted, quarterly
trade balance,
£ billion
UK tradeSeasonally
in goods
and
services
15
15
10
10
0
Trade in services
5
0
Trade in goods
-5
-5
-10
-10
-15
-15
-20
-20
-25
-25
billions
Sterling (£) (billions)
5
88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08
Source: Reuters EcoWin
and UK BoP - Current Account
UK and USA
USA
current
account as %
As a percentage of GDP
of GDP
1
UK
Per cent of national income
0
1
0
-1
-1
-2
-2
USA
-3
-3
-4
-4
-5
-5
-6
-6
-7
-7
95
96
97
98
99
00
01
02
03
04
05
06
07
08
09
10
Source: Reuters EcoWin
United States Balance of Trade in Goods
10
10
0
0
-10
-10
-20
-20
-30
-30
-40
-40
-50
-50
-60
-60
-70
-70
82
84
86
88
90
92
94
96
98
00
02
04
06
billions
USD (billions)
US trade deficit$ billion per month
08
Source: Reuters EcoWin
0
0
-5
-5
-10
-10
-15
-15
-20
-20
-25
-25
-30
-30
-35
-35
-40
-40
00
01
02
European Union
Japan
03
04
05
06
07
billions
USD (billions)
USA Trade Balances with Selected Countries
US trade
balances
with selected
Monthly trade balance, $ billion
regions
08
OPEC
Pacific Rim Countries
Source: Reuters EcoWin
US Balance of Trade in Goods and Services
Monthly tradein
balance
(Exports - Imports),
seasonally
adjusted, $ billion
US trade
goods
and
services
20
20
10
10
Services
0
-10
-10
-20
-20
-30
-30
-40
-40
-50
-50
Goods
-60
-60
-70
-70
-80
-80
-90
-90
00
01
02
Goods and services
billions
USD (billions)
0
03
04
Goods
05
06
07
08
Services
Source: Reuters EcoWin
Annual Growth of Chinese Exports
Percent
Annual growth of Chinese exports
60
60
50
50
40
40
30
30
20
20
10
10
0
0
-10
-10
-20
-20
00
01
02
03
04
05
06
07
08
09
Source: Reuters EcoWin
USA - Trade with China
data, $ billion
US Trade withQuarterly
China
100
100
75
75
50
50
25
25
0
0
US Exports to China
-25
-25
-50
-50
billions
USD (billions)
US Imports from China
Trade balance with China
-75
-75
-100
-100
90
91
92
93
94
95
96
97
98
99
00
01
02
03
04
05
06
07
08
Source: Reuters EcoWin
350
350
300
300
250
250
200
200
150
150
100
100
50
50
0
0
billions
USD (billions)
China's Trade Balance in Goods and Services
China
Balance$ billion,
of annual
Trade
in Goods
data
and Services
95
96
97
98
99
00
01
02
03
04
05
06
07
Source: Reuters EcoWin
China's Mountain of Foreign Currency Reserves
2.00
2.00
1.75
1.75
1.50
1.50
1.25
1.25
1.00
1.00
0.75
0.75
0.50
0.50
0.25
0.25
0.00
0.00
thousand billions
US $s (thousand billions)
Billions
of US dollars
China’s foreign
exchange
reserves
90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08
Source: Reuters EcoWin
China's Net Foreign Assets
14
14
13
13
12
12
11
11
10
10
9
9
8
8
7
7
6
6
5
5
4
4
3
3
2
2
00
01
02
03
04
05
06
thousand billions
National Currency (thousand billions)
trillion (trillion = thousand
billion)
China’s NetYuan,Foreign
Assets
07
Source: Reuters EcoWin
Japanese
Exports and
Imports
of Goods of
Japanese
exports
and
imports
Monthly trade, thousand billion Yen, seasonally adjusted
goods
7.5 Exports 4.4116T
7.5
7.0
7.0
6.5
6.5
6.0
6.0
5.5
5.5
5.0
5.0
Exports
4.5
4.5
4.0
4.0
3.5
3.5
thousand billions
JPY (thousand billions)
Imports 4.5457T
Imports
3.0
3.0
2.5
2.5
2.0
2.0
95
96
Exports
97
98
99
00
01
02
03
04
05
06
07
08
Imports
Source: Reuters EcoWin
Russia's Exports of Oil, Natural Gas and Oil Products
130
130
120
120
110
110
100
100
90
90
80
80
70
70
60
60
50
50
40
40
30
30
20
20
10
10
0
0
92
93
94
95
96
Natural gas
97
98
99
00
01
Oil products
02
03
04
05
06
billions
USD (billions)
Annual value of exports,
billion, source
Russian exports
of $oil
andIMFgas
07
Oil
Source: Reuters EcoWin
150
150
125
125
100
100
75
75
50
50
25
25
0
0
-25
-25
billions
US Dollars (billions)
Russia Trade and Current Account Balance
Russian
Trade
and Current
Annual balance, US Dollar billion
Account
94
95
96
97
98
99
00
01
02
03
04
05
06
07
BALANCE ON GOODS AND SERVICES
CURRENT ACCOUNT, N.I.E.
Source: Reuters EcoWin
50
50
40
40
30
30
20
20
10
10
0
0
-10
-10
-20
-20
-30
-30
00
01
United Kingdom
02
03
Germany
04
05
Spain
06
07
billions
EUR (billions)
of Trade in Goods and Services
Trade Balance
balances
for selected EU
Net trade balance, quarterly, billion Euros
countries
08
Norway
Source: Reuters EcoWin
Dollar value of African Trade
350
350
300
300
250
250
200
200
150
150
100
100
50
50
90
91
92
93
94
95
96
97
Export, EXPORTS,F.O.B. US Dollars
98
99
00
01
02
03
04
05
06
billions
US Dollars (billions)
US dollars
Dollar value of Billion
African
trade
07
Imports, IMPORTS,C.I.F.
Source: Reuters EcoWin
Exports and Imports for Oil Exporting Countries
1.0
1.0
0.9
0.9
0.8
0.8
0.7
0.7
0.6
0.6
0.5
0.5
0.4
0.4
0.3
0.3
0.2
0.2
0.1
0.1
0.0
70
0.0
72
74
76
78
80
82
84
86
Export, EXPORTS,F.O.B. US Dollars
88
90
92
94
96
98
00
02
04
thousand billions
US Dollars (thousand billions)
value of trade, $trillion
Trade for OilAnnual
Exporting
Countries
06
Imports, IMPORTS,C.I.F.
Source: Reuters EcoWin
5.5
5.5
5.0
5.0
4.5
4.5
4.0
4.0
3.5
3.5
3.0
3.0
2.5
2.5
2.0
2.0
1.5
1.5
1.0
1.0
0.5
0.5
94
95
96
97
98
99
00
01
02
03
04
05
06
thousand billions
US Dollars (thousand billions)
Developing Countries Trade
Value of Annual
Trade
for Developing
value of exports and imports, US $ trillion
Countries
07
Export, EXPORTS,F.O.B. US Dollars
Imports, IMPORTS,C.I.F.
Source: Reuters EcoWin