Tuesday, February 19, 2008

U.S. 2007 trade deficit drops because of falling imports

The total U.S. trade deficit in goods and services fell 6.8 percent in 2007, from $758.52 billion to $711.61 billion, with all of the net improvement generated by a major fall-off in imports, not the export boom touted by U.S. government officials according to a U.S Business and Industry Council report.

The report went on to say that in many of the sectors generating the economy’s highest paying jobs and greatest productivity growth and technological progress – manufacturing and high-tech manufacturing – meaningful trade deficit improvement was difficult to find.

Total exports of goods and services recorded its second straight year of double-digit growth. But the 12.18 percent increase in 2007 – to $1.62 trillion – was slightly slower than the 12.68 percent increase registered in 2006. The big change in trade flows came on the import side, where growth slowed from 10.35 percent in 2006 to 5.86 percent in 2007. Total import levels hit $2.33 trillion last year.

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