Friday, March 24, 2023

Record US trade deficit in 2022, worst since 1960

That red balance of goods and services exchange with the rest of the world reached $948.100 million; That’s 12.2% higher than in 2021, according to data released Tuesday by the Commerce Department.

This is the highest number since 1960.

growth of trade deficit This reflects strong demand for foreign products and services by American businesses and consumers in the aftermath of the pandemic and the tough actions of the Biden administration.

From the automotive industry (+52,000 million dollars) to consumer goods (+76,300 million), through industrial materials and supplies (+160,900 million) and food (+26,100 million), all large sectors increased their imports in 2022 .

In December, the trade deficit widened to $67.4bn, up 10.5% from the previous month, but below the consensus of economists, who had expected $68.5bn.

Among other negative indicators, the December data generally showed a sharp decline in exports amid two consecutive years of high inflation. Exports fell by $2.2 billion in December compared to $250.2 billion in November.

“Overall, trade flows slowed due to a shift in demand from goods to services and slower global growth,” said Rubeela Farooqi of High-Frequency Economics.

A notable fact is that China is set to lose its position as the United States’ largest trading partner in 2022, the first time since 2019 that a trade war broke out between the world’s largest economies.

Washington imported Chinese goods worth $537,000 million, which was more than $553,000 million in purchases from the European Union.

Nation World News Desk
Nation World News Desk
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