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  1. 23-11-2023, 03:40 PM #11
    winner69
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    Quote Originally Posted by beacon View Post
    (exports – imports) = Trade Surplus
    So, GDP = private consumption + gross private investment + government investment + government spending + Trade Surplus

    Ceteris paribus, GDP up (=economy growing) if Trade Surplus up, OR Trade Deficit (opposite of Trade Surplus) DOWN
    But need to consider how much of those imports end up as Inventory at end of period as change in Inventories is a component of GDP
    Last edited by winner69; 23-11-2023 at 03:47 PM.
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