Net exports after one year if exports and imports grow at the rates shown, starting from your figures.
Export growth
Import growth
Net exports
Change
0%
0%
−500
0
0%
5%
−640
−140
0%
10%
−780
−280
5%
0%
−385
115
5%
5%
−525
−25
5%
10%
−665
−165
10%
0%
−270
230
10%
5%
−410
90
10%
10%
−550
−50
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What it calculates: Net exports (NX), Trade balance, Net exports as a share of GDP, Export coverage of imports.
Updated 22 September 2026 · Transparent assumptions
Exports of 2,300 against imports of 2,800 is net exports of −500, a deficit of 2.5% of GDP
Net exports are the value of goods and services a country sells abroad minus the value it buys from abroad. In the worked economy ($ billions), NX = 2,300 − 2,800 = −500: a trade deficit, equal to 2.5% of GDP of 20,000.
NX = X − M
The same economy runs a net capital outflow of −500 on the national savings page — the deficit is paid for by foreign investment in its assets, and the two figures are always equal.
Worked example
X = 2,300 and M = 2,800
NX = 2,300 − 2,800
NX = −500
(−2.5% of GDP)
Imports are subtracted from GDP because consumption, investment and government already counted them
GDP by expenditure is C + I + G + NX. A television imported from Korea and sold to a US household is counted in consumption, although it was not produced in the United States; subtracting imports removes it again, so GDP counts only domestic production. Imports do not reduce GDP by themselves — they are subtracted because they were added elsewhere.
Y = C + I + G + (X − M)
That is why a rise in imports matched by a rise in consumption leaves GDP unchanged, and why net exports, not imports alone, enter the expenditure identity.
US net exports were −$876 billion at an annual rate in the second quarter of 2026, −2.7% of GDP
In the second quarter of 2026 the United States exported goods and services at an annual rate of $3,752 billion and imported $4,628 billion, for net exports of −$876 billion — 2.7% of GDP of $32,486 billion, according to BEA’s national accounts. Exports covered 81% of imports, and exports plus imports came to 26% of GDP.
By world standards the US economy is closed: imports were 14% of GDP in 2024 on World Bank figures, against 38% in Germany, 80% in Belgium and 102% in Ireland. The more open an economy, the more its trade balance swings with the business cycle.
A trade deficit is paid for by selling assets or borrowing, not by losing money
A country that imports more than it exports pays for the difference by selling assets to foreigners or borrowing from them — its net capital outflow is negative by exactly the size of the deficit. Whether that is a problem depends on what the inflow funds: investment that raises future output can repay itself; consumption financed from abroad adds to foreign claims without adding capacity.
NX = NCO = S − I
The deficit also reflects saving and investment at home. Because NX = S − I, a trade deficit means domestic investment exceeds national saving; policies aimed at the trade balance that ignore saving and investment tend not to move it.
A deficit that widens by 50 on a GDP of 19,500 subtracts 0.26 points from growth
Statistical agencies report how much each component added to GDP growth. For net exports it is the change in net exports divided by the previous period’s GDP. In the example, net exports moved from −450 to −500, and −50 ÷ 19,500 = −0.26 percentage points, while GDP grew 2.56% overall.
contribution = (NX₂ − NX₁) ÷ Y₁ × 100
BEA computes these contributions from inflation-adjusted, chain-weighted figures, so a calculation on current-dollar figures will differ when export and import prices are moving. The logic — and the sign — are the same.
Two periods
NX₁ = 2,200 − 2,650 = −450
NX₂ = 2,300 − 2,800 = −500
(−500 − (−450)) ÷ 19,500 × 100
= −0.26 percentage points
Income at home, income abroad and the real exchange rate move the balance
Imports rise with domestic income — the marginal propensity to import — so booms tend to widen trade deficits and recessions to narrow them. Exports rise with foreign income. And a higher real exchange rate makes a country’s goods dearer abroad and foreign goods cheaper at home, lowering net exports.
After a depreciation the balance often worsens before it improves — the J-curve — because import prices rise at once while quantities adjust over months as buyers switch suppliers.
Frequently Asked Questions
How do you calculate net exports?
Subtract total imports from total exports: NX = X − M. Positive net exports are a trade surplus; negative net exports are a trade deficit.
Why are imports subtracted in GDP?
Because imported goods are already counted in consumption, investment or government purchases. Subtracting them leaves only domestic production in GDP.
Is a trade deficit bad?
Not in itself. It means the country is buying more than it sells abroad and financing the gap with foreign investment or borrowing; the question is what that financing pays for.
How do net exports contribute to GDP growth?
The contribution is the change in net exports divided by the previous period’s GDP, in percentage points. A widening deficit subtracts from growth; a narrowing one adds to it.
Sources & References
Figures on this page are checked against primary, authoritative sources. Links open in a new tab.
Results are estimates for planning and analysis based on the figures you enter. They are not accounting, tax, or financial advice — verify with your own records and a qualified professional before making decisions.