WASHINGTON (dpa-AFX) – The US foreign trade deficit rose to a record high last year. The deficit increased by 26.9 percent to $859.1 billion in 2021, the Department of Commerce announced in Washington on Tuesday. Year-on-year, imports increased by 20.5 percent. Exports climbed 18.5 percent. During the Corona crisis, more consumer goods were bought from abroad, while domestic services were less in demand.
In December, the deficit widened less than expected. It rose to $80.7 billion from $79.3 billion in the previous month. Analysts had expected an average deficit of $83.0 billion. Imports grew somewhat faster than exports. Imports rose 1.6 percent mom, while exports rose 1.5 percent.
The US trade deficit is chronic. Imports are consistently higher than exports. The United States is a typical net importing country. They finance the deficit through foreign loans. The capital markets of the USA are attractive, also because the United States has the world’s leading currency, the dollar./jsl/bgf/jha