This is a correlation between the sum of goods prices exported from the country and the sum of goods prices imported to the country (the difference between export and import).
In case when the sum of exported goods exceeds the sum of imported goods, the balance is considered to be active (it has a surplus); in the other case it is passive (it has an unfavorable balance).
Active balance (or decrease of an unfavorable balance) in long-term outlook is considered to be a favorable factor for the rate of national currency.
While estimating the index, the bidders pay great attention to the current dynamics during a few months.
Export’s growth improves the US competitive position in world’s goods market, and the growing demand from other countries stimulates the growth of the US economy.
Import’s growth proves a good domestic demand, however because of great delay this indicator cannot be an appraiser of consumption indices.
Net Export Indicator is considered to be a constituted part of Gross Domestic Product (GDP), that’s why some unpredictable deficit’s increase/decrease may lead to revision the value of GDP either in negative or positive side.
