US trade deficit reaches record level in 2022

US trade deficit reaches record level in 2022

It is the highest figure since 1960. The United States imported 3,958 million dollars in 2022 against 3,402 million the previous year.

The increase reflects the strong demand for products and services from abroad by US businesses and consumers in the aftermath of the pandemic.

From the automotive industry to consumer goods, including industrial materials and supplies and food, all the major sectors increased their imports in 2022.

In December, the trade deficit widened to $67.4 billion, up 10.5% from the previous month but below the consensus of economists, who had expected $68.5 billion.

Figures for December generally showed a decline in exports as the US economy grapples with persistently high inflation. Exports fell by 2.2 billion dollars in December compared to 250.2 billion in November.

“Overall, trade flows slowed due to a shift in demand from goods to services and slower global growth,” said Rubeela Farooqi of High Frequency Economics.

“But better growth prospects in the United States and abroad could be supportive in the coming months,” he estimated.

A notable fact is that in 2022 China lost its position as the United States’ largest trading partner, the first time this has happened since 2019 when a trade war broke out between the world’s largest economies.

Washington imported Chinese goods for 537,000 million dollars, which was surpassed by the 553,000 million purchases from the European Union.

With information from AFP and Reuters

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