Trade Surplus
Plain definition
The amount by which a country's exports of goods and services exceed its imports over a period -- a positive trade balance. A trade surplus means the country sells more to the world than it buys from it.
In economics
Export-led economies like Germany and China run persistent surpluses, accumulating foreign assets. Surpluses can draw political pressure from trading partners and, under fixed exchange rates, force domestic money-supply expansion unless sterilized by the central bank.
Example
Germany's trade surplus reflects strong exports of cars and machinery exceeding its imports, with the counterpart being German investment flowing into foreign assets.
A surplus is often treated as proof of economic strength or 'winning' at trade. But a trade surplus also means the country is consuming less than it produces and lending the difference abroad -- it can reflect weak domestic demand as easily as export prowess.