U.S. Trade Deficit - 4/9/15
The U.S. trade deficit, as reflect in the current account, is widening again. During the final quarter of 2014, America’s current account deficit rose to one hundred and fourteen billion dollars, an increase of nearly fifteen percent from the third quarter deficit of ninety nine billion dollars. For all of twenty fourteen, the current account deficit expanded nearly three percent to more than four hundred and ten billion dollars, the largest annual deficit since twenty twelve.
A broadening trade deficit contributed to the slowdown in overall U.S. economic growth during last year’s fourth quarter and is anticipated to represent a drag on growth in twenty fifteen as a stronger dollar renders American products less competitive in overseas markets. As reported by the Associated Press, the nation’s widening trade gap subtracted one point one percentage points from growth during the final three months of twenty fourteen.
GDP only expanded two point two percent on an annualized basis during that time. Many experts believe the U.S. dollar will continue to strengthen this year, making even more difficult for U.S. exporters to penetrate foreign markets and easier for American consumers to afford imported merchandise.