The relation between a country's level of saving and investment:

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A country's level of saving and investment directly affects its trade balances. If a country saves more than it invests, it runs a trade surplus, while if it invests more than it saves, it runs a trade deficit. This is because a country with a high level of saving generates a surplus of funds that can be channeled into investments, including foreign investments, which will increase its exports and reduce its imports, leading to a trade surplus. Conversely, a country with a low level of saving will have a trade deficit, as it will have to borrow from abroad to finance its investments, leading to an increase in imports and a decrease in exports.

The Relation Between a Country's Level of Saving and Investment