Deficit

What Does Deficit Mean?
A situation in which liabilities exceed assets, expenditures exceed income, imports exceed exports, or losses exceed profits.

Investopedia explains Deficit
A deficit is the opposite of a surplus. If a country imports more than it exports, it is said to have a trade deficit. Many scholars feel that a trade deficit can not be sustained in perpetuity.

Related Terms

Asset
Current Account Deficit
Deficit Spending Unit
Fiscal Deficit
Income
Liability
Perpetuity
Profit
Revenue Deficit
Surplus
More Related Terms

Related Links

Understanding Capital And Financial Accounts In The Balance Of Payments - Learn how these accounts are intertwined and what they tell us.
What Is The Balance Of Payments? - Countries track money coming in and going out through something called the balance of payments. Learn more here.
Current Account Deficits: Government Investment Or Irresponsibility? - Deficit can be a sign of trouble for some countries, and of health for others. Find out what it means when more funds are exiting than entering a nation.
Where does stimulus economics come from? -
Breaking Down The U.S. Budget Deficit - Find out why this particular piece of national financing gets so much attention from the media and investors.

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