Filed under: International markets, Products and services, Federal Reserve, Recession
It should probably come as little surprise that the U.S. trade deficit actually dropped last year, falling 9% from the record all time high set in 2006. I say it should come as no surprise, mainly because you would have to have been living in a cave the past year not to realize that the U.S. dollar has been in free-fall.
While no one likes to see the current shape of the American currency, the one good thing that comes from a weak dollar is that our exports become more attractive to the rest of the world. In 2006, America ran a trade deficit of a massive $811.5 billion. That number shrank to $738.6 billion last year, and should drop even further in 2008 considering the current economic landscape.
So at least we have something to celebrate right? Well, before you go doing cartwheels over the drop in the deficit you should take a second to consider just what it means to run a deficit of $738.6 billion.
Continue reading Trade deficit for U.S. drops 9% in 2007
Permalink | Email this | Comments
