Main Page | See live article | Alphabetical index

Invisible balance

The invisible balance is that part of the balance of trade figures that refers to services and commercial money transfer that does not result in the transfer of physical objects. Examples include consulting services, tourism, and patent license revenues. This figure is usually generated by tertiary industry.

In countries with more developed economies, this is a very important part of the figure, as a more developed economy is liable to import basic goods and food owing to the cheaper costs of production (especially labour) abroad. In order to get the balance of trade positive, the invisible balance must be greater than the negative effect of the visible balance.