http://www.nytimes.com/2014/03/20/business/us-current-account-deficit-is-smallest-in-14-years.html?ref=economy
This article discuses how the trade deficit has fallen from
81.1 billion to 96.4 billion. This smaller trade deficit shows that U.S.
companies are producing more to fit the demand domestically and overseas.
Exports reached 405.4 billion because of increased overseas sales of petroleum
and agricultural products. We also have received about 206.1 billion from
overseas because of investments. Payments overseas were about 137.8 billion.
Both of these factors allowed for the income surplus in the U.S. to be 64.4 billion.
There are two reasons we saw a decrease in this gap. One reason was because of
the production of oil and gas in the U.S. The second reason is because low
interest rates have decreased payments to foreigners that have treasury bonds
in the U.S. and the payments from investments that come from overseas has
increased and this has caused the nations investment surplus.
The production of oil and gas in the United States will play an important role in our growth over the next few decades. The continued expansion of the Keystone Pipeline will be critical to output increases.
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