What is the difference between a foreign trade surplus and a balance of payments surplus

The difference between the external surplus and the balance of payments surplus is that the coverage is different - the external surplus alone refers to the positive difference between the income and expenditure of the external **, that is, the export ** amount is greater than the import ** amount; A balance of payments surplus is a positive balance of all external balances of a country, that is, all international revenues are greater than expenditures; The balance of payments refers to the balance of payments in addition to foreign payments, including other balances of payments, such as the balance of international donations, the balance of aid, and the balance of payments of other non-first-class payments.

Therefore, the difference between the external surplus and the balance of payments surplus is that the external surplus is partial, while the balance of payments is the whole.

The balance of payments includes foreign investment, in addition to the flow of funds from abroad, there will also be foreign investment, financial investment, etc., which do not belong to the category, but only at the level of goods and services.

Surplus refers to the fact that in a certain unit of time, the amount of goods exported by a country is greater than the amount of goods it imports domestically. **The surplus not only reflects the economic demand and development trend of the world market, but also reflects the economic development status of a country in a year, and the country can appropriately adjust and change the economic policy to adapt to the law of market development according to the data clues presented, and the appropriate economic policy is conducive to the sustainable development of the economy.

1. Promote sustainable economic development;

2. Increase the amount of currency stored and enhance the country's economic strength;

3. Enhance comprehensive national strength and enhance international status;

4. Escort the development of all walks of life;

5. It is conducive to the stability of the RMB exchange rate and the implementation of relatively loose macroeconomic regulation and control policies.

1. The policy effect of money is reduced, and the utilization rate of social resources is also reduced;

2. It will increase the cost of foreign exchange reserves and increase the speed of capital outflow;

3. As a result, the economy is overly dependent on foreign markets, and the national economy survives in the cracks.

Surplus and deficit are two words that we are not unfamiliar with, because they can often be heard in the news, but the specific meaning of these two words, many of us may not necessarily know very well. So what does a surplus mean?

1. **Surplus, also known as "**excess", refers to the phenomenon that the export volume of each country or region is greater than the import amount in a certain period of time. It generally indicates that a country's external ** is in a more advantageous position.

2. The deficit, also known as "the over-entry", refers to the phenomenon that the import value of each country or region is greater than the export value in a certain period of time. It generally indicates that a country's external ** is in a relatively disadvantageous position.

3. The surplus and deficit reflect the commodity situation between countries, and are also indicators for judging the macroeconomic operation.