WASHINGTON (AP) -- The U.S. trade deficit fell to its lowest level in nine months, as growing demand for American goods overseas and a falling dollar pushed exports to their highest level in more than two years.
The trade deficit narrowed to $38.7 billion in October, the Commerce Department reported Friday. The figure was 13.2 percent below September's deficit of $44.6 billion...
Remember in class about an open economy? Well, according to the article, the U.S. exports rose roughly 3.2% and the imports dipped .5% in October. This would indicate that we have a lower exchange rate in terms of currency towards other nations, which is why the exports rose more than the imports. Could this be the beginning phase to balance the trade but at the same time, devaluing our dollar?
It will be interesting to see how this plays politically. I can see some being angry about the devaluation of the US dollar, but economically it seems like a positive development. It seems like there are many structural changes happening to our economy.
ReplyDeleteIts a good thing that our exports are rising more quickly than our imports, even if our dollar is being devalued at least one positive is happening.
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