U.S. Quarterly Trade Deficit Was the Smallest in 14 Years

The Commerce Department on Wednesday announced that the United States exports and overseas investment have been profiting as a result the current deficit in the fourth quarter is at the lowest level in 14 years. “The imbalance fell to $81.1 billion in the October-December quarter, down from $96.4 billion in the July-September quarter, the Commerce Department said on Wednesday.”

American companies are producing goods that meets the demands of the American people and overseas. The goods exported increased to 1.9% to $405.4 billion due to the overseas higher sales on petroleum and agricultural product.  The current account deficit decrease to 1.9% and has been the lowest in the third quarter since 1997.

One of the reasons the United States have benefiting in decreasing the deficit is due to the American oil and gas. New drilling technologies have enabled or made it easy to drill in the states of North Dakota and Pennsylvania which decreased oil purchases abroad and strengthen American petroleum exports.

I like to think that someday we will bring our deficit close to zero, but I think this is a wishful thinking and even if it  does happens it won’t be in my life time. Nonetheless, this is great news to all the American people.

http://www.nytimes.com/2014/03/20/business/us-current-account-deficit-is-smallest-in-14-years.html?ref=business