The US trade deficit increased to the maximum monthly and annual levels since the last recession, according to Bloomberg.
The trade deficit in December increased by 5.3% to $53,1 billion, according to the U.S. Department of Commerce. The figure exceeded the forecast and was the highest since October 2008
Surveyed by Bloomberg analysts had expected the deficit to be $52.1 billion
According to revised data, in November, the negative balance amounted to $50.4 billion, instead of $50.5 billion, as previously reported.
By the end of 2017, the trade deficit increased by 12% to $566 billion, reaching the highest since 2008.
Exports in December increased by 1.8% compared to the previous month to $203,4 billion Increase was primarily due to a record supply of means of production, the growth of industrial supplies and materials exports.
Imports increased by 2.5% to $256,5 billion amid record purchases of consumer goods, capital goods and food products.
In 2017, US exports increased by 5.5% to $2,33 trillion. Imports increased by 6.7% to a record $2.9 trillion. Both measures grew at the fastest rate since 2011
The President of the United States Donald trump is keen to reduce the trade deficit in the framework of its policy of “America first” (America First).
Meanwhile, the trade deficit with China last year increased by 8.1% to a record $375,2 billion.
The goods trade deficit with the southern neighbor of the United States, Mexico, in 2017 increased by 10% to $71,1 billion-the highest level since 2007, the US is leading negotiations on the revision of the North American free trade agreement (NAFTA) with Mexico and Canada. Trump has repeatedly threatened to withdraw from the agreement.
The US trade deficit excluding price fluctuations (the figure used to calculate GDP) rose in December to $68.4 billion from $66.5 billion in the previous month.
Statistics for December adds details to the data on GDP for the fourth quarter, when trade was a significant drag on the economy.
As reported “Vesti.Economy”, according to preliminary data from the Commerce Department, U.S. GDP in October-December increased by 2.6% in terms of annual growth after rising by 3.2% in the third quarter.
Net exports deducted of 1.13 percentage points from economic growth – is the maximum for the year.