Washington: The US trade deficit in December jumped to the highest level in more than two years as American exports fell and imports climbed to a record level.
The deficit jumped 17.1 per cent to USD 46.6 billion in December, the biggest imbalance since November 2012, the Commerce Department reported today.
The widening trade gap reflected a drop in exports, which fell 0.8 per cent to USD 194.9 billion. Imports soared 2.2 percent to USD 241.4 billion.
The deficit for all of 2014 increased to USD 505 billion, up 6 per cent from the 2013 deficit of USD 476.4 billion.
Economists expect the deficit to widen further in 2015 as strong growth in the United States boosts imports, while weak growth overseas and a rising dollar continue to depress exports.
Economists were split on whether the bigger-than-expected December trade deficit would result in a significant revision in the government's 2.6 per cent initial estimate for overall growth in the fourth quarter.
Paul Ashworth, chief US economist at Capital Markets, said he believed much of the December trade balance was already reflected in the government's GDP estimate.
But Jennifer Lee, senior economist at BMO Capital Markets, said she thought the trade gap figures, along with weaker growth in business stockpiles, could trim as much as a 0.5 percentage point from the government's initial estimate. "This is not good news for the final measure of economic growth," she said in a research note.
