Later this week, US Commerce Department had issued a statement saying that the world’s No. 1 economy’s trade deficit was soaring by a stratospheric pace in the fourth quarter of the year, while the United States’ trade deficit had spiked to its highest level in more than fourteen years in November 2020 as more and more businesses were reportedly buoying up imports while dwarfing a rise in exports amid an extension in pandemic-driven restrictions.
In point of fact, according to US Commerce Department’s trade deficit report released later last week, the United States had witnessed its trade deficit swelling more than 8 per cent to $68.1 billion in November last year, the highest level since the August of 2006, from a reading of $63.1 billion registered in October on an unrevised basis, missing an analysts’ estimate of a trade deficit of $65.2 billion in November.
US trade deficits hit 14-year high as imports jump 2.9 per cent
Aside from that, as a stiffening up of pandemic-led restrictions across the country had been leading to an unprecedented fall in exports despite a record rise in orders for US-borne core capital goods, imports climbed as much as 2.9 per cent to $252.3 billion in November, while imports of goods had accelerated by their steepest pace since the May of 2019, rising more than 3 per cent to $214.1 billion.
Nonetheless, exports rose by 1.2 per cent to $184.2 billion, while exports of home-grown goods had progressed marginally by 1 per cent to $127.7 billion.
However, amid a soaring trade deficit, the US economy is expected to harness an expansion of around 5 per cent over the fourth quarter of the year with a large chuck of GDP (Gross Domestic Product) growth seen stemming off a rising investment in inventories.
Nonetheless, the US economy roared back at a record pace of 33.4 per cent over the third quarter of the year following a contraction of 31.4 per cent during the second quarter, the deepest plunge since the Government had begun to keep track of the records back in 1947.