What is the purpose of a trade surplus in an economy?

A trade surplus occurs when a country exports more goods and services than it imports, resulting in a net inflow of foreign currency. The purpose of a trade surplus is to strengthen a country’s economy by accumulating foreign reserves, which can be used to pay off national debt or fund government initiatives. A surplus can lead to currency appreciation, as foreign buyers need to purchase the country’s currency to pay for exported goods. While a trade surplus can signal economic strength and competitiveness, it may also lead to trade tensions with other countries if they perceive it as an imbalance that affects their own economy.