10 de julio de 2020
ÚLTIMAS NOTICIAS:
English - News

US trade deficit declines for 1st time in 6 years amid trade tensions

 View of containers at the Port of Oakland, California.. EFE-EPA/JOHN G. MABANGLO/File

View of containers at the Port of Oakland, California.. EFE-EPA/JOHN G. MABANGLO/File

By Alfonso Fernandez

Washington, Feb 5 (efe-epa).- For the first time in six years, the US trade deficit in goods and services declined in 2019, falling by 1.7 percent due to the uneven reduction in both imports and exports amid the trade and tariff war and slower global growth.

The accumulated trade deficit during 2019 was $616.8 billion, the lowest registered since 2013.

In its report released on Wednesday, the Department of Commerce said that last year US exports fell by 0.1 percent to $2.5 trillion, while imports declined by 0.4 percent to $3.1 trillion.

Although the overall deficit declined in 2019, in December the monthly deficit grew by 12 percent to $48.9 billion.

The big contributor to the decline in the trade deficit last year was the reduction in the trade imbalance in goods with China, with that figure falling by 17.6 percent to $345.6 billion, with declines in both imports - by 16.2 percent - and in exports (11.3 percent) within the framework of the ongoing trade war between Washington and Beijing.

The figures were released after in January President Donald Trump, who came into office in January 2017 with an aggressive agenda of economic protectionism, touted the conclusion of the "first phase" of a trade pact with China as a victory, an agreement whereby the two parties are seeking to reduce bilateral trade tensions and tit-for-tat rounds of tariff hikes on each other's goods.

The trade war accounts for a good part of the decline in the trade deficit with China, according to Ward McCarthy, the chief financial economic for the Jefferies LLC consulting group.

The dispute between the two largest economies in the world has consequences far beyond US and Chinese borders and both countries have seen their growth rates reduced in recent months.

The US economy slowed down in 2019 to a 2.3 percent growth rate from 2.9 percent in 2018.

Meanwhile, China's GDP rose by 6 percent (on an interannual basis) in the third quarter, the worst quarterly figured to be announced since March 1992, when Beijing began officially reporting such data.

In addition, Trump managed early this year to deliver on another of his big promises: signing the new North American trade pact with Canada and Mexico, known as the USMCA and designed to replace the North American Free Trade Agreement (NAFTA).

Nevertheless, the US trade deficit with Mexico hit an historic high in 2019 of $101.8 billion, $21.1 billion more than in 2018.

This performance comes despite Trump's promises to rebalance the deficit that, he claims, is due to the unfair treatment given to the US by its trade partners.

In fact, economists say that the trade balance is not a significant indicator of a country's economic health.

The US, as the world's largest economy, is often seen to increase its trade deficits during good economic times as Americans' appetites for imports grows.

In its latest forecasts - released at the Global Economic Forum in Davos, Switzerland, last month - the International Monetary Fund predicted that the moderation in US growth would continue, coming in at 2 percent in 2020 after showing 2.3 percent growth in 2019, and being further dampened in 2021 to 1.7 percent.

The numbers for China, despite the deceleration in its growth rate noted by the IMF, are still far above those for most other countries, and the forecast is for 6 percent growth in 2020 and 5.8 percent in 2021.

Even so, this is a drop from the 6.1 percent growth Beijing enjoyed in 2019, which nevertheless is the lowest growth rate reported since 1990.

 600x350

Comentarios

Histórico de noticias
Mastercard Helps Small Latin American Businesses Leap into E-Commerce

Miami, July 8th (EFE).- Mastercard - the global technology company in the payments industry - announced a new digital platform with local and regional...

At least 7 dead, 40 injured when gasoline truck burns on Colombia highway

Barranquilla, Colombia, Jul 6 (efe-epa).- At least seven people died and 40 were injured on Monday when a tanker truck filled with gasoline flipped over and...

Daily COVID-19 pandemic roundup: July 6

Miami Desk, Jul 6 (efe-epa).- Here's a roundup of stories around the world related to the novel coronavirus pandemic:

Texas, Florida hospitals on verge of collapse while Trump does nothing

Washington, Jul 6 (efe-epa).- Some hospitals in the states of Texas and Florida are on the verge of having no additional beds for coronavirus - or any other...

Trudeau will not visit Washington to hail USMCA pact with Trump, AMLO

Toronto, Jul 6 (efe-epa).- Canadian Prime Minister Justin Trudeau will not travel to Washington this week to meet with US President Donald Trump and Mexican...

Too-early reopening responsible for Covid-19 spikes in US

Washington, Jul 5 (efe-epa).- Local officials in the US states hardest hit by the renewed Covid-19 spikes - including Florida and Arizona - on Sunday are...

Daily COVID-19 pandemic roundup: July 2

Miami Desk, Jul 2 (efe-epa).- Here's a roundup of stories around the world related to the novel coronavirus pandemic:

US puts brakes on economic reopening as daily infection tally hits new high

By Jairo Mejia

Plastic curtain allows relatives to hug quarantined elderly in Sao Paulo

By Carla Samon Ros

Three snapshots of Venezuela's ongoing crisis

By Ron Gonzalez

Daily COVID-19 pandemic roundup: July 1

Miami Desk, Jul 1 (efe-epa).- Here's a roundup of stories around the world related to the novel coronavirus pandemic:

US buys up almost all Remdesivir to treat COVID-19

Washington, Jul 1 (efe-epa).- The United States, the world epicenter for the coronavirus with more than 2.6 million cases and a death toll of 127,000, has...

Weinstein victims to receive $19 mn in settlement

New York, Jul 1 (efe-epa).- Dozens of women who were sexually abused and harassed while they were working for now-convicted US film producer Harvey...

Daily COVID-19 pandemic roundup: June 30

Miami Desk, Jun 30 (efe-epa).- Here's a roundup of stories around the world related to the novel coronavirus pandemic:

US considering another stimulus package amid huge pandemic challenge

By Alfonso Fernandez

Fauci: US could quickly jump from 40K to 100K daily Covid-19 cases

Washington, Jun 30 (efe-epa).- The top US government epidemiologist, Dr. Anthony Fauci, on Tuesday warned that the number of newly detected daily...

Ex-Pemex chief arrested in Spain agrees to be extradited to Mexico

Mexico City, Jun 30 (efe-epa).- Mexican Attorney General Alejandro Gertz Manero reported Tuesday that the former director of Mexico's state-run oil company...

Black Lives Matter protesters set up camp in New York

By Jorge Fuentelsaz

More than 100 arrested for vandalizing statues amid US protests

Washington, Jun 29 (efe-epa).- More than 100 people have been arrested for vandalizing statues and monuments amid the protests against racism and police...

Supreme Court overturns Louisiana law restricting abortion

Washington, Jun 29 (efe-epa).- The US Supreme Court on Monday overturned a law that would have severely restricted access to abortion in Louisiana, dealing...

Daily COVID-19 pandemic roundup: June 28

Miami Desk, Jun 28 (efe-epa).- Here's a roundup of stories around the world related to the novel coronavirus pandemic:

LGTB+ groups cancel marches due to pandemic, but not demands for equality

International Desk, Jun 28 (efe-epa). - The coronavirus pandemic forced the worldwide LGTB+ community to cancel in-person marches and Gay Pride parties on...

No new Florida COVID-19 record set, but Miami infections keep rising

Miami, Jun 28 (efe-epa).- After two consecutive days of setting new records for newly detected coronavirus infections, the daily number of cases confirmed...

Daily COVID-19 pandemic roundup: June 25

Miami Desk, Jun 25 (efe-epa).- Here's a roundup of stories around the world related to the novel coronavirus pandemic: