Sunday, December 12, 2010
Decrease in Trade Deficit
In October, the US trade deficit was lower than it has been since January, which leads economists to be hopeful that our economy will show growth in the fourth quarter. There are now estimates of a 2.5 % annual growth rate in the fourth quarter. The trade deficit is at 38.7 billion which is down from 44.6 billion in September. US exports increased mainly increased to Asia, in particular China, and also to Mexico. US recovery in this recession is built around export growth and capital investment so this lower than expected trade deficit makes economists very hopeful that the economy is on the right path to recovery.
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2 comments:
This is surely a good news as the U.S has been trying to increase exports to help improve domestic employment rate. I hope and look forward to a change in unemployment rate as the result of this.
I agree - and the goods that we are exporting are (Im assuming) high tech and specialized. This is good, it goes against basic economic theory to argue for protectionist policies. The U.S. will fare better when we begin to realize this and market our high tech and specialized goods.
Also, the U.S. has the majority of intelligence and know how on green energy and military- this is a highly marketable good.
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