Legal Definitions - balanced economy

A balanced economy is an economy in which the value of imports and exports is equal. It means that a country is not relying too much on either importing or exporting goods and services.

For example, if a country imports more than it exports, it may have a trade deficit, which can lead to a weaker currency and higher inflation. On the other hand, if a country exports more than it imports, it may have a trade surplus, which can lead to a stronger currency and lower inflation.

Having a balanced economy is important because it can help a country maintain stable economic growth and avoid economic crises.