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More cash is leaving the country than is coming into the country is the primary problem with trade deficit. The trade deficit can have an impact on employment and incomes.
Primary deficit=Fiscal deficit-[minus] Interest payments
trade deficit occurs when? trade deficit occurs when?
deficit
Trade deficit
The USA has a trade deficit.
It has a surplus in trade of invisibles, and a deficit in trade of visibles.
Primary deficit is the gross deficit which is obtained by subtracting interest payments from budget deficit of any country of a particular year. We need to know the value of primary deficit, while calculating the fiscal deficit.Alternative Definition of Primary DeficitPrimary deficit corresponds to the net borrowing, which is required to meet the expenditure excluding the interest payment.Primary Deficit = (Fiscal Deficit - Interest Payment)Statistical reports: Primary deficit ( in India)In the fiscal year 1999-2000: primary deficit was (-) Rs.2598.72 croreIn the fiscal year 2000-2001: primary deficit was (-) Rs.1038.38 croreIn the fiscal year 2001-2002: primary deficit was (-) Rs.2598.72 croreOver the last few year the fiscal status of India has improved. In the fiscal year 2006-07, the revenue deficit in India was 2%, primary deficit was 0.1% and fiscal deficit was 3.7 percent. The government of India budget for 2007-08 predicts a revenue deficit of 1.5%, primary deficit of -0.2% and fiscal deficit of 3.3 percent.
countries must borrow money to pay for their imports. -- A+
countries must borrow money to pay for their imports. -- A+
Germany currently has a trade surplus. COOL HUH !
The price of foreign oil was raised by OPEC.