Due to Americans importing less oil, the gaping trade deficit shrank in September. There was a 6.8% decline from August to September for the imbalance of exports and imports. This decline in the steepest that has taken place in nearly two years. However, due to high oil prices in August the decline appears to be greater than it actually was. The Unites States trade situation continues to be imbalanced. As most people are familiar with, trade with China accounts for the greater portion of the deficit. China accounted for a total of $23 billion on an unadjusted basis. The number is so high from China imports that it contributes to about a fourth of the trade deficit. On a positive note, the imbalances of trade with Europe, Africa, and South America have narrowed in recent months.
It is expected that global growth will remain strong and serve as an ongoing support for the U.S. economy, said the chief of the United States economy. Assuming that there will be no world wars anytime soon , depending on other countries for economic support seems to be working well thus far for the U.S. It seems slightly unstable to be so dependent, but I guess it balances out in that they are dependent on us as well.
The New York Times, Jeremy W. Peters Friday, November 10, 2006
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