The US trade deficit rose 6.5% last year to hit a new record high of $763.6bn (£393bn).Now I'll start by admitting that I hate IPE with a purple passion. Anyway, I've been told on multiple occasions that the fact that the US has a trade deficit only means that we have lots of money to spend so we spend it on things made in other countries. Okay, I get that, but how long can we maintain such a growing imbalance? It would seem there would have to be some outer limit or threshold.
Fuelled by last year's rise in global oil prices and the surge in Chinese imports, it was the fifth record annual US trade deficit in succession.
The gap with China alone was $232.5bn last year, the largest imbalance the US has ever recorded with one country.
Tuesday, February 13, 2007
US trade still in deficit
BBC News - US trade deficit hits fresh high