US trade deficit

Which influence has the US trade deficit on its likely future evolution, on how the dollar will behave in the long-term, on the political aspects of the trade deficit, and on how European and Asian countries will deal with it? These questions depend on how the economy fluctuates and evolves.

A tendency: the US imported less in these hard times of economic slowdown. Furthermore the skidding oil prices caused the US trade deficit in November, these deficit was on its lowest level in five years. The Commerce Department communicated that the gap between the value of exports and imports decreased quite a lot, namely 28.7 per cent in one month.

Two affaires gives occasion to the trade deficit. First and foremost the American consumers clipped their demand for foreign-made consumer goods. Secondly the falling energy prices slashed the value of imported gas and oil. Even when we take no account of energy prices, the trade deficit still narrowed in November. The American import fell by 12 per cent or some $25 billion, which is incredibly much in comparison with the export. Contrary the imbalance with China declined 17.5 per cent, which was a negligible decline since June.

Chief US economist, Nigel Gault communicated that the US cut its demand very quickly equated to the rest of the world who cut its demand for US exports. This saying might moderate the US downturn but it isn’t so effective. Since the summer of 2008, the trade between the US and the world has shrank. This is the moment that the financial crisis scourged the global, financial markets.

In my opinion, there aren’t so many effective measures to recovery the US trade deficit. The deficit fluctuates according to circumstances, for instance the financial crisis. So the government hasn’t any impact on it, the countries in the world regulate the import and export and these two factors are very important for the trade. A deficit or surplus have you to interpret as something who evolve with the economy.