trade gap: meaning, definition, pronunciation and examples
C1Formal, Economic/Financial
Quick answer
What does “trade gap” mean?
The difference in value between a country's imports and exports over a period, when imports exceed exports.
Audio
Pronunciation
Definition
Meaning and Definition
The difference in value between a country's imports and exports over a period, when imports exceed exports.
A deficit in the balance of trade; a negative trade balance indicating that a country is buying more goods and services from abroad than it is selling overseas.
Dialectal Variation
British vs American Usage
Differences
Both terms are used identically in meaning and context. No significant lexical or grammatical differences.
Connotations
Slightly more common in headline/journalistic language in both varieties.
Frequency
Equally frequent in economic reporting in both the UK and US.
Grammar
How to Use “trade gap” in a Sentence
The trade gap with [country] widened.The government aims to narrow the trade gap.A trade gap of [amount] was recorded.Vocabulary
Collocations
Examples
Examples of “trade gap” in a Sentence
verb
British English
- The figures show the trade gap is widening.
- Policymakers hope to trade-gap the issue in the next quarter.
American English
- The report indicates the trade gap widened last month.
- The administration is focused on trade-gapping the deficit with China.
adjective
British English
- The trade-gap figures were concerning.
- We need a trade-gap reduction strategy.
American English
- The trade-gap data was released today.
- They discussed trade-gap implications.
Usage
Meaning in Context
Business
Used in financial reports and market analyses to discuss a company's or country's import/export health.
Academic
Used in economics papers and textbooks when discussing balance of payments and macroeconomic policy.
Everyday
Rare in casual conversation. Appears in news headlines or discussions about the economy.
Technical
A precise term in international economics and statistics for measuring net exports.
Vocabulary
Synonyms of “trade gap”
Strong
Neutral
Weak
Vocabulary
Antonyms of “trade gap”
Watch out
Common Mistakes When Using “trade gap”
- Using 'trade gap' to refer to a surplus (it is only for deficits).
- Confusing it with 'budget deficit' (which is about government spending vs. revenue).
FAQ
Frequently Asked Questions
It is generally viewed negatively as it can indicate a loss of domestic jobs and a outflow of currency, but it can also reflect strong domestic demand. Economists debate its long-term effects.
The trade gap (or trade deficit) is only one part of the current account. The current account also includes income from investments and transfers. A trade gap usually contributes to a current account deficit.
No. By definition, a 'gap' or 'deficit' is negative. A positive equivalent is called a 'trade surplus'.
Common policies include devaluing the currency to make exports cheaper, imposing tariffs or quotas on imports, subsidising domestic industries, or improving productivity and innovation to boost export competitiveness.
The difference in value between a country's imports and exports over a period, when imports exceed exports.
Trade gap is usually formal, economic/financial in register.
Trade gap: in British English it is pronounced /ˈtreɪd ɡæp/, and in American English it is pronounced /ˈtreɪd ɡæp/. Tap the audio buttons above to hear it.
Phrases
Idioms & Phrases
- “Mind the gap (playful/punny adaptation in economic headlines)”
Learning
Memory Aids
Mnemonic
Imagine a physical GAP in a wall through which more goods are flowing IN (imports) than are going OUT (exports).
Conceptual Metaphor
ECONOMIC HEALTH IS PHYSICAL BALANCE (a gap represents an imbalance/unhealthiness).
Practice
Quiz
What does a 'trade gap' specifically indicate?