US trade deficit hits record high in 12 years

The US trade deficit balance reached its highest level in 12 years in 2020, as the Covid-19 pandemic disrupted the flow of goods and services in US foreign trade.

The U.S. Department of Commerce said on Friday that the trade deficit jumped 17.7 percent to $ 678.7 billion last year, the highest since 2008.

Exports of goods and services fell 15.7 percent to their lowest level since 2010. Imports of goods and services fell 9.5 percent to the lowest level in four years.

Falling exports have helped the economy shrink by 3.5 percent over the past year, the biggest drop in GDP since 1946. Trade flows are gradually improving.

For December 2020, the trade deficit narrowed 3.54% to $ 66.6 billion.

Economists polled by “Reuters” expected the deficit to narrow to $ 65.7 billion last December.

Merchandise imports rose 1.5% to $ 217.7 billion in December 2020, while merchandise exports jumped 4.7% to $ 133.5 billion.

Source: Reuters

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