Reply To: More trade deficit confusion

#17736
jmherbener
Participant

Here’s a simple breakdown of the balance of payments account:

http://www.newyorkfed.org/aboutthefed/fedpoint/fed40.html

As it explains, since 1993 merchandise and services are combined into the trade deficit or surplus, which is calculated as exports minus imports. So the two calculation you refer to give the same result.