The balance of trade in services (also called the invisible balance) is the difference between the value of a country’s exports of services and its imports of services over a given period, typically one year.

Services include all intangible economic activities such as:

• Transportation: shipping, airlines, freight services
• Tourism and travel: foreign tourists visiting, and citizens travelling abroad
• Financial services: banking, insurance, advisory services
• Communication services: telecommunications, postal services
• Business services: consulting, legal, accounting, IT services

Formula:
Balance of trade in services = Value of exports of services − Value of imports of services

Balance states:

• Invisible surplus: exports of services > imports of services (positive value)
• Invisible deficit: imports of services > exports of services (negative value)

The balance of trade in services is a key sub-component of the current account of the balance of payments.