The monthly trade gap swelled to $48.8 billion
as goods imports climbed to the highest level since July 2008, just
before the financial crisis caused world trade to plunge, a report from
the Commerce Department showed on Friday. Analysts
surveyed before the report had expected the December trade deficit at
$48.0 billion, up from a revised estimate of $47.1 billion in November.
U.S. exports grew slightly in December, with records set for petroleum, services and advance technology goods. For the year, the U.S. trade gap rose 11.6 percent to $558.0 billion, the highest since 2008.
Exports
last year rose 14.5 percent to a record $2.1 trillion, keeping the
United States on pace to meet President Obama's goal of doubling exports
in five years. Imports grew 13.8 percent to a record $2.7 trillion, with records set in several categories. Auto
imports rose to the highest since 2007 and petroleum the highest since
2008. The average price for imported oil in 2011 was a record high
$99.78 per barrel
The
record trade deficit last year with China is certain to reinforce
concerns in Congress about Beijing's currency and trade practice ahead
of a meeting next week between Obama and the Asian giant's expected next
leader, Vice President Xi Jinping. U.S.
exports to China jumped 13.1 percent to $103.9 billion. But that was
overwhelmed by a 9.4 percent increase in imports from China, which
pushed the tally to a record $399.3 billion.
http://www.cnbc.com/id/46339978
4 comments:
Anytime I see statistics that mention a monetary record set I always wonder if the people who found the record adjust for inflation.
I noted that because I wasn't aware Pres. Obama had promised to double exports. http://www.nytimes.com/2010/01/29/business/29trade.html That article mentions that he wanted to raise it to 2 trillion. This summary says that exports are at 2.1 trillion. Something here does not fit.
The article is troubling. If our exports have doubled, how have our trade deficits with Europe, China, and Canada risen? (Probably because we're exporting to the Third World.)
Yes, our exports have doubled, but our imports are still higher than our exports. The article said that imports were $2.7 trillion and our exports were $2.1 trillion dollars. A trade deficit or negative trade imbalance is when our imports are higher than our exports, which is exactly the case here. Therefore, this is the reason why the U.S. trade deficit with the European Union and Canada has risen, even though our exports have doubled. It would be great to just look at the fact that our exports have doubled this year, but in reality we also need to look at our imports to see how strong the economy really is. Also, the article points out the hindrance of China’s currency value. The U.S. wants China to raise the value of their currency because currently our money is more expensive than their currency. This is another reason why the U.S. has a trade deficit because other countries are more willing to buy imports from China and not the United States.
I think it will be difficult to increase our exports of basic manufactured goods, simply because there are so many cheaper places to produce that - hence outsourcing. However, if the government focuses on high tech and specialized service, I think America has a chance at lowering the deficit. It has to be focused on soon though, if we want it to make a difference.
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