http://www.nytimes.com/2013/04/06/business/economy/trade-deficit-narrows-as-exports-increase.html?ref=economy
The US's trade deficit narrowed abruptly in February while exports rose close to a record. Also, the volume of imported crude oil fell to the lowest seen in 17 years. The gap between exports and imports declined to about $43 billion, which is down 3.4% from $44.5 billion in January according to the Commerce Department. It is stated that this is the smallest trade imbalance since December when it decreased $38.1 billion, the lowest in three years. Meanwhile, exports rose 0.8% to $186 billion, also close to a record from December. Imports stayed consistent at $228.9 billion.
The overall deficit for the US in the first two months of this year had a rate of $524.5 billion which was down from $539.5 billion imbalance last year. It is predicted that the deficit will narrow slightly this year. Using a measure of GDP, grew annually at 0.4% in the October-December quarter. Some say that this economic growth strengthened 2013's first quarter to 3%.
As the article suggets, they are hopeful to increase levels of exports of other products too which will contribute to growth, but in order for that to happen the international markets have to improve their economic standing in order to be able to import American goods, such as some of the Asian economies and the Eurozone.
ReplyDeleteIt is nice to see that the trade deficit is shrinking. Hopefully it continues to make progress like this if not even better. Like Priyanka said in order for this to get better other economies have to recover and be able to demand American goods to increase our exports. If other countries cannot recover their economies our trade balance growth will be limited.
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