In this report we peruse the trade balances for the top 25 richest countries. Thirteen of those wealthiest economies posted trade surpluses during 2018.
In a nutshell, a trade balance is an accounting record that measures the difference in international cash flows between a country’s exports and imports. Trade balance metrics below focus not only on traded products (also referred to as merchandise or goods), but also services only
Small variations in a country’s exports or imports can have a significant impact on its trade balance. Consider that, if a nation’s annual exports earn US$100 billion while its imports cost $110 billion, a 10% increase in spending on imports to $121 billion more than doubles its trade deficit (from -$10 billion to -$21 billion). This assumes that its revenues from exports stays the same.
We start this analysis with the overall trade balances for goods and services combined.
Richest Countries’ Total Trade Balances Compared
Listed below are the yearly trade balances posted by the world’s 25 wealthiest nations in 2008, 2018 and 2019.
You can change the presentation order by clicking the triangle icons at the top of each column. Starting with the largest economy, the Rank column refers to the relative size of each country in terms of Gross Domestic Product (GDP) on a Purchasing Power Parity basis. To the right are 2 change-related columns that document the change since 2018 and 2008 in terms of percentage points for each year rather than as percentage amounts.
| Rank | Country | 2018 | 2017 | 2008 | 2017-8 | 2008-18 |
|---|---|---|---|---|---|---|
| 1 | China | $101 billion | $180.1 billion | $287.1 billion | -43.9% | -64.8% |
| 2 | United States | -$677.2 billion | -$604.7 billion | -$741.2 billion | +12% | -8.6% |
| 3 | India | -$156 billion | -$117.5 billion | -$115.8 billion | +32.8% | +34.8% |
| 4 | Japan | -$18.2 billion | $19.8 billion | -$19 billion | -192.1% | -4% |
| 5 | Germany | $249.1 billion | $255.4 billion | $217.7 billion | -2.5% | +14.4% |
| 6 | Russia | $181.4 billion | $99.8 billion | $180.5 billion | +81.7% | +0.5% |
| 7 | Indonesia | -$15.6 billion | $4.5 billion | -$5.3 billion | -446.2% | +194.7% |
| 8 | Brazil | $24.7 billion | $33.1 billion | $8.3 billion | -25.4% | +198.8% |
| 9 | United Kingdom | -$41.8 billion | -$55.7 billion | -$126.5 billion | -25% | -67% |
| 10 | France | -$56.4 billion | -$55 billion | -$63.7 billion | +2.6% | -11.5% |
| 11 | Mexico | -$22.4 billion | -$20.7 billion | -$25.9 billion | +8.3% | -13.4% |
| 12 | Italy | $40.7 billion | $49.9 billion | -$34.9 billion | -18.3% | -216.8% |
| 13 | Turkey | -$29.7 billion | -$56.9 billion | -$51 billion | -47.7% | -41.7% |
| 14 | South Korea | $42.3 billion | $60.8 billion | -$19.8 billion | -30.4% | -313.7% |
| 15 | Spain | $16.1 billion | $31.2 billion | -$95.3 billion | -48.4% | -116.9% |
| 16 | Canada | -$29.1 billion | -$31.8 billion | $32.6 billion | -8.5% | -189.2% |
| 17 | Saudi Arabia | $90.9 billion | $32.9 billion | $134.9 billion | +176.7% | -32.6% |
| 18 | Iran | $49.2 billion | $33.8 billion | $41.4 billion | +45.8% | +18.8% |
| 19 | Egypt | -$46.7 billion | -$38.7 billion | -$19.5 billion | +20.8% | +139.8% |
| 20 | Thailand | $27.7 billion | $39.7 billion | -$15.6 billion | -30.3% | -277.2% |
| 21 | Australia | $23.9 billion | $5.5 billion | -$18 billion | +330.1% | -232.4% |
| 22 | Taiwan | $42.8 billion | $49.7 billion | $2.8 billion | -13.8% | +1,411% |
| 23 | Poland | $20.1 billion | $23.5 billion | -$31.3 billion | -14.8% | -164.2% |
| 24 | Nigeria | -$9.6 billion | -$1.4 billion | $31.5 billion | +581% | -130.4% |
| 25 | Pakistan | -$41.4 billion | -$40.4 billion | -$27.6 billion | +2.5% | +50% |
Only 4 among these richest countries grew their trade surpluses from 2017 to 2018, namely Australia (up 330.1%), Saudi Arabia (up 176.7%), Russia (up 81.7%) and Iran (up 45.8%).
Strongest surplus declines since 2017 belong to Spain (down -48.4%), China (down -43.9%), South Korea (down -30.4%), Thailand (down -30.3%) then Brazil (down -25.4%).
Trade deficits pose even grimmer scenarios. Indonesia slid from a $4.5 billion positive balance in 2017 into a -$15.6 billion negative balance for 2018. Similarly, Japan went from a $19.8 billion surplus to a -$18.2 billion deficit one year later.
Greatest percentage increases in negative trade balances were racked up by Nigeria (up 581%), India (up 32.8%), Egypt (up 20.8%) and the United States (up 12%).
In contrast, three richest countries were able to downsize their trade deficits from 2017 to 2018. These are Turkey (down -47.7%), United Kingdom (down -25%) and Canada (down -8.5%).
Richest Countries’ Trade Balances for Products Compared
The following table focuses on trade balances for products exported and imported on international markets. Eleven of these wealthiest economies generated surpluses for traded goods.
| Rank | Country | 2018 | 2017 | 2008 | 2017-8 | 2008-18 |
|---|---|---|---|---|---|---|
| 1 | China | $359.2 billion | $419.6 billion | $298.1 billion | -14.4% | +20.5% |
| 2 | United States | -$946.4 billion | -$859.9 billion | -$864.9 billion | +10.1% | +9.4% |
| 3 | India | -$184.5 billion | -$148.2 billion | -$133.9 billion | +24.5% | +37.9% |
| 4 | Japan | -$10.2 billion | $26.2 billion | $18.9 billion | -138.8% | -153.9% |
| 5 | Germany | $269.4 billion | $278.9 billion | $264.9 billion | -3.4% | +1.7% |
| 6 | Russia | $211.2 billion | $130.9 billion | $200.9 billion | +61.3% | +5.1% |
| 7 | Indonesia | -$8.5 billion | $11.9 billion | $7.8 billion | -171.5% | -209.3% |
| 8 | Brazil | $58.7 billion | $67 billion | $25 billion | -12.4% | +135% |
| 9 | United Kingdom | -$182.6 billion | -$199.3 billion | -$223.3 billion | -8.4% | -18.2% |
| 10 | France | -$91.1 billion | -$84.8 billion | -$100.5 billion | +7.5% | -9.3% |
| 11 | Mexico | -$13.7 billion | -$10.9 billion | -$17.3 billion | +25.8% | -20.7% |
| 12 | Italy | $44.1 billion | $53.8 billion | -$19.2 billion | -18.1% | -330.1% |
| 13 | Turkey | -$55.1 billion | -$76.8 billion | -$69.9 billion | -28.2% | -21.2% |
| 14 | South Korea | $70 billion | $95.3 billion | -$13.3 billion | -26.6% | -627.6% |
| 15 | Spain | -$47.7 billion | -$31.3 billion | -$139.5 billion | +52.3% | -65.8% |
| 16 | Canada | -$9.1 billion | -$11.9 billion | $46.9 billion | -23.6% | -119.5% |
| 17 | Saudi Arabia | $159.3 billion | $93.3 billion | $200.7 billion | +70.7% | -20.6% |
| 18 | Iran | $55.4 billion | $40.1 billion | $51.4 billion | +38% | +7.7% |
| 19 | Egypt | -$51.6 billion | -$40.4 billion | -$26.8 billion | +27.8% | +92.7% |
| 20 | Thailand | -$1.1 billion | $10.9 billion | -$2.7 billion | -110.2% | -59.3% |
| 21 | Australia | $26.5 billion | $8.4 billion | -$13.8 billion | +216.6% | -292.8% |
| 22 | Taiwan | $49.3 billion | $58 billion | $14.4 billion | -15% | +243.4% |
| 23 | Poland | -$5.9 billion | $3.3 billion | -$38.6 billion | -276.8% | -84.8% |
| 24 | Nigeria | $16.5 billion | $11.8 billion | $53.6 billion | +39.4% | -69.3% |
| 25 | Pakistan | -$36.5 billion | -$35.6 billion | -$22 billion | +2.7% | +65.7% |
Five among these richest countries grew their product trade surpluses from 2017 to 2018, namely Australia (up 216.6%), Saudi Arabia (up 70.7%), Russia (up 61.3%), Nigeria (up 39.4%) and Iran (up 38%).
Strongest product surplus declines since 2017 belong to South Korea (down -26.6%), Italy (down -18.1%), Taiwan (down -15%) then China (down -14.4%).
Strongest increases in product trade deficits were incurred by Spain (up 52.3%), Egypt (up 27.8%), Mexico (up 25.8%), India (up 24.5%) and the United States (up 10.1%).
Leading the reductions in product trade deficits from 2017 to 2018 were Poland (down -276.8%), Indonesia (down -171.5%), Japan (down -138.8%) and Thailand (down -110.2%).
Richest Countries’ Trade Balances for Services Compared
The table below presents trade balances for services exported and imported on international markets. Nine of these wealthiest economies generated surpluses for services these countries provide globally.
| Rank | Country | 2018 | 2017 | 2008 | 2017-8 | 2008-18 |
|---|---|---|---|---|---|---|
| 1 | China | -$258.2 billion | -$239.5 billion | -$11.1 billion | +7.8% | +2,236% |
| 2 | United States | $269.2 billion | $255.2 billion | $123.8 billion | +5.5% | +117.5% |
| 3 | India | $28.5 billion | $30.7 billion | $18.1 billion | -7.1% | +57.6% |
| 4 | Japan | -$8 billion | -$6.5 billion | -$37.9 billion | +24.3% | -78.8% |
| 5 | Germany | -$20.3 billion | -$23.5 billion | -$47.2 billion | -13.7% | -57% |
| 6 | Russia | -$29.8 billion | -$31.1 billion | -$20.4 billion | -4.2% | +45.9% |
| 7 | Indonesia | -$7.1 billion | -$7.4 billion | -$13.1 billion | -3.8% | -45.7% |
| 8 | Brazil | -$34 billion | -$33.9 billion | -$16.7 billion | +0.3% | +103.4% |
| 9 | United Kingdom | $140.8 billion | $143.6 billion | $96.8 billion | -1.9% | +45.5% |
| 10 | France | $34.7 billion | $29.8 billion | $36.8 billion | +16.5% | -5.6% |
| 11 | Mexico | -$8.7 billion | -$9.8 billion | -$8.6 billion | -11.3% | +1.3% |
| 12 | Italy | -$3.4 billion | -$4 billion | -$15.7 billion | -15.1% | -78.4% |
| 13 | Turkey | $25.4 billion | $19.9 billion | $18.9 billion | +27.3% | +34.2% |
| 14 | South Korea | -$27.7 billion | -$34.5 billion | -$6.5 billion | -19.8% | +322.8% |
| 15 | Spain | $63.8 billion | $62.5 billion | $44.2 billion | +2% | +44.2% |
| 16 | Canada | -$20 billion | -$19.9 billion | -$14.2 billion | +0.6% | +40.2% |
| 17 | Saudi Arabia | -$68.4 billion | -$60.4 billion | -$65.9 billion | +13.2% | +3.8% |
| 18 | Iran | -$6.2 billion | -$6.4 billion | -$10 billion | -3.2% | -38.3% |
| 19 | Egypt | $4.9 billion | $1.7 billion | $7.3 billion | +183.9% | -33.3% |
| 20 | Thailand | $28.8 billion | $28.9 billion | -$12.9 billion | -0.1% | -323.4% |
| 21 | Australia | -$2.7 billion | -$2.8 billion | -$4.3 billion | -5.5% | -37.2% |
| 22 | Taiwan | -$6.5 billion | -$8.4 billion | -$11.5 billion | -22.4% | -43.6% |
| 23 | Poland | $25.9 billion | $20.2 billion | $7.4 billion | +28.4% | +252.2% |
| 24 | Nigeria | -$26 billion | -$13.2 billion | -$22.1 billion | +97% | +17.7% |
| 25 | Pakistan | -$4.9 billion | -$4.8 billion | -$5.5 billion | +1% | -12.3% |
Six among these richest countries expanded their service trade surpluses from 2017 to 2018, namely Egypt (up 183.9%), Poland (up 28.4%), Turkey (up 27.3%), France (up 16.5%), the United States (up 5.5%) and Spain (up 2%).
The greatest service surplus decline since 2017 was the -7.1% dip for India.
The most intense increases in service trade deficits were posted by Nigeria (up 97%), Japan (up 24.3%), Saudi Arabia (up 13.2%) and China (up 7.8%).
Leading the reductions in service trade deficits from 2017 to 2018 were Taiwan (down -22.4%), South Korea (down -19.8%), Italy (down -15.1%), Germany (down -13.7%) and Mexico (down -11.3%).
Reasons Why Trade Balances Change
One way to eliminate a trade deficit is via a swing in relative prices resulting from a drop in a county’s currency rate or a decline in domestic prices. The Economist explains that when a deficit country’s currency falls in value or if inflation in the deficit country is lower than what is in effect for its surplus trading partner, the deficit country’s import purchases become more expensive whereas export sales are relatively cheaper. These developments in turn will tend to depress the deficit country’s demand for imports while making its exports more price competitive.
On the other hand, a surplus country’s positive trade balances may be eroded should its economic growth accelerate because of increased demand for imports in face of decreased international sales of exports, its strengthened and therefore more expensive currency, a rising inflation rate–or a combination of any or all of these factors.
See also Exchange Rates for Top 25 Richest Countries, Central Bank Interest Rates and Top 100 Richest Countries by GDP
Research Reference Materials:
Central Intelligence Agency, The World Factbook Country Comparison: Current Account Balance. Accessed on November 25, 2019
International Monetary Fund, IMF DataMapper: Current account balance U.S. dollars. Accessed on November 25, 2019
International Trade Centre, Trade Map – Trade statistics for international business development. Accessed on November 25, 2019
Organisation for Economic Co-operation and Development, OECD Data: Trade in goods and services. Accessed on November 25, 2019
The Economist, Guide to Economic Indicators: Making Sense of Economics (7th Edition). Accessed on November 25, 2019
Trading Economics, Economic Indicators by Category: Balance of trade. Accessed on November 25, 2019
Wikipedia, Balance of trade. Accessed on November 25, 2019
World Bank, Net trade in goods and services (BoP, current US$). Accessed on November 25, 2019