Last Update 21:59
Monday, 21 October 2019

US exports fell in 2015 for first time since recession

AP , Friday 5 Feb 2016
California
Container ships sit in berths at the Port of Los Angeles, California October 15, 2014 (Reuters)
Share/Bookmark
Views: 647
Share/Bookmark
Views: 647

The U.S. trade deficit rose in December as American exports fell for a third straight month, reflecting the pressures of a stronger dollar and spreading global weakness. Those factors contributed to the first annual drop in U.S. export sales since the Great Recession shrank global trade six years ago.

The December deficit increased 2.7 percent to $43.4 billion, the Commerce Department reported Friday. Exports fell by 0.3 percent, driven by sales declines of civilian aircraft, autos and farm products. Imports increased 0.3 percent as Americans bought more foreign-made cars and petroleum.

For all of 2015, the deficit rose 4.6 percent to $531.5 billion. Exports fell 4.8 percent, the first setback since 2009 when the world was in the grips of recession. Imports also retreated 3.1 percent.

American exporters have been hurt by global economic weakness and a stronger dollar, which makes their products more expensive on overseas markets.

A wider trade deficit is a drag on economic growth because it means fewer overseas sales by American producers and larger imports of foreign goods.

The deficit subtracted about one-half percentage point from growth in 2015, a year when the economy, as measured by the gross domestic product, grew by a modest 2.4 percent.

Analysts say trade will also subtract from growth this year as well given that the dollar has continued to rise and China, the world's second largest economy, is still struggling to cope with slowing growth.

The U.S. deficit with China set a record in 2015, rising 6.6 percent to $365.7 billion. The deficit with the European Union also set a record, rising 7.9 percent to $153.3 billion.

The Obama administration is hoping to win congressional approval this year for a new trade agreement with 11 Asian nations but critics of the administration's trade policies point to the rising deficits to support their arguments that past trade deals have cost American jobs.

Short link:

 

Email
 
Name
 
Comment's
Title
 
Comment
Ahram Online welcomes readers' comments on all issues covered by the site, along with any criticisms and/or corrections. Readers are asked to limit their feedback to a maximum of 1000 characters (roughly 200 words). All comments/criticisms will, however, be subject to the following code
  • We will not publish comments which contain rude or abusive language, libelous statements, slander and personal attacks against any person/s.
  • We will not publish comments which contain racist remarks or any kind of racial or religious incitement against any group of people, in Egypt or outside it.
  • We welcome criticism of our reports and articles but we will not publish personal attacks, slander or fabrications directed against our reporters and contributing writers.
  • We reserve the right to correct, when at all possible, obvious errors in spelling and grammar. However, due to time and staffing constraints such corrections will not be made across the board or on a regular basis.
Latest

© 2010 Ahram Online.