US foreign trade deficit falls in January
US foreign trade deficit falls in January

According to analysts, the world economy has been badly hit by the COVID-19 outbreak. The prolonged spread of the epidemic has had a negative impact even on the US economy which resulted in a trade deficit. The Commerce Department said that the foreign trade deficit in the US sank by 6.7% to 45.3 billion dollars. Experts forecast the trade gap to narrow to 46.1 billion dollars from a revised 48.6 billion dollars in December 2019. The US exports fell by 0.4 percent in January 2020 while imports plunged by 1.6 percent. At the same time, the volume of services increased by 0.7 percent for the accounting period. Year-on-year, exports advanced by 1.1 percent while imports sank by 2.4 percent. The US Food supply surged by 5 percent, the supply of cars increased by 6.9 percent while the volume of capital goods shrank by 2.2 percent. In January 2020, the trade deficit with China dropped to 26.07 billion dollars from 34.47 billion dollars in December 2019, reaching its low for the last 9 years. The spread of coronavirus, as well as suspension in Chinese production, resulted in an acute situation in international trade. According to experts, it is hard to tell for how long the disruption in Chinese production is going to last. Moreover, the COVID-19 outbreak wiped away all positive aspects of the phase 1 trade deal between the US and China, signed in mid-January 2020.

Published: 2020-03-12 08:26:33 UTC
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