Trade balance shows increasing deficit magnitude

Steps:

• Note balance of trade values: -2.08 billion AUD in July 2015 (deficit of 2.08 billion) and -3.94 billion AUD in January 2016 (deficit of 3.94 billion).
• Compare deficits: The absolute value increased from 2.08 billion to 3.94 billion.
• Assess change: A larger deficit means the trade imbalance deteriorated.
• Classify trend: This describes a worsening deficit.

Why A is correct:

• Worsening deficit means the negative trade balance (exports minus imports) becomes more negative, indicating growing imports relative to exports per economic definitions.

Why the others are wrong:

• B: Improving deficit requires the deficit to shrink (less negative balance), but it grew.
• C: No surplus exists; both values are negative.
• D: No surplus occurred, so it cannot worsen.

Final answer: A