Balance on goods and services refers to a measure of a country's international trade flows. It is the difference between a country's exports and imports of goods and services during a given period. This measure is essential for countries to track their international trade and assess their economic performance.

In an economy, the balance on goods and services reflects the balance of trade between a country and its trading partners. A positive balance on goods and services means that a country's exports are greater than its imports, while a negative balance on goods and services means that a country's imports exceed its exports.

The balance on goods and services is used by governments and central banks to monitor their country's economic performance. They use it to assess the strength of their country's international trade and determine areas where exports can be promoted and imports reduced. This balance is also used to formulate trade policies and negotiate trade agreements.

The balance on goods and services also affects industries within a country. A positive balance on goods and services can provide opportunities for industries that are exporting goods or services to expand. On the other hand, a negative balance on goods and services may indicate a need to increase competitiveness in certain industries and decrease reliance on imports.

Overall, the balance on goods and services is a critical measure in assessing a country's economic performance and informing policy decisions.