Commentary 3 - Article

Commentary 3 - Article - Trade gap widens on record deficit...

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Trade gap widens on record deficit with China By Annalyn Censky, staff reporterOctober 14, 2010: 4:02 PM ET NEW YORK (CNNMoney.com) -- The U.S. trade gap widened to $46.3 billion in August, driven by a record-breaking deficit with its largest trading partner China. The trade balance, which measures the difference between the nation's imports and exports, widened from $42.6 billion in July, according to a government report released Thursday. Economists had expected the deficit to narrow to $44.5 billion during August, according to Briefing.com. As the U.S. trade deficit has deepened, China is running a trade surplus. On Wednesday, China announced a surplus of $16.9 billion for September, down slightly from its $20 billion surplus in August. But the U.S. ran up a record-high $28 billion deficit with China in August. "The jump in bilateral trade with China to a record high will fuel growing fears of a currency war," Paul Dales, a U.S. economist with Capital Economics said in a research note.
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This document was uploaded on 10/26/2011 for the course PLIR 2050 at UVA.

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