Surplus refers to the balance of payments surplus, also known as "balance of payments surplus". In a certain period of time (usually one year), the difference between the total income of foreign economic exchanges between countries is greater than the total expenditure, which is a surplus. It usually starts with "+".

Deficit means that in foreign trade, if a country imports more than exports within a certain period of time (usually one year). The deficit of international trade, under the condition of gold standard currency, needs to export gold to export surplus countries to pay off debts, otherwise trade cannot be reached. Under the credit currency system, there are diametrically opposite economic interests according to the different currencies used.

Importance of surplus

First, the current account surplus stimulates domestic aggregate demand and promotes economic growth. The current account surplus mainly comes from the increase of net exports, which is the result of the rapid growth of China's foreign trade, especially exports. The increase of net export makes the domestic total demand expand, and the expansion of domestic total demand promotes the growth of national economy.

Second, the multiplier effect of net exports has expanded the scale of economic growth. The current account surplus is mainly the result of the increase in net exports. The increase of net exports has a multiplier effect on foreign trade. Under the multiplier effect of foreign trade, the scale of economic growth is several times that of net exports, which is greater than the current account balance. Secondly, the capital account surplus directly promotes economic growth.

Baidu encyclopedia-deficit

Baidu encyclopedia-balance of payments surplus