The US trade deficit has grown significantly over the course of 2010, in response to vastly rising imports from China and a stuttering domestic export and manufacturing market, prompting concerns as to the resilience of the US economy.
The US trade deficit has grown at a record pace over the last year, seeing the largest growth in over a decade, to take the difference between US exports and imports to almost $500bn.
The increase, up by almost 33% on the same figures from the previous year, were largely accounted for by rising imports from the Chinese economy, which soared to some $365bn, and the spiralling costs of importing oil at current market rates.
The trade deficit with China alone rose by over 20%, in the same week that it was announced that the Chinese economy had surpassed Japan as the world’s second largest.
While the figures have posed some cause for concern, some analysts have renewed calls for further action to be taken against the Chinese authorities, who have allegedly been involved in deliberate currency devaluation to gain an unjust competitive advantage towards the US market.
While the trade deficit widening has come as a blow to the overall US economic picture, the markets can take solace in a substantial growth in exports over the period, up 16.6% to over $1.82tn.