Trade deficit reaches lowest point in three years

Trade deficit reaches lowest point in three years

The deficit of trade in the United States has for a long time been an irritant for the President Donald Trump. However, the deficit as per the recent data has fallen to a low of three years at $43.1 billion in the month of November as per the release on Tuesday of the data from Commerce Department.

The decline of 8.2 % in the deficit of trade has followed a drop of $2.5 billion in the imports having been paired with the increase of $1.4 billion which has increased October onwards.

The figures which had been released recently have suggested that the deficit has dropped overall in the year 2019 and there has been an export drop of $0.1 billion in the beginning 11 months as the imports have seen a drop of $3.9 billion in comparison to the similar period in the year 2018.

This drop is a shot in the arm of the incumbent President who has been rallying against the deficit being a sign of weakness of the United States of America. As the deficits are being reduced from the calculations of GDP, the economists have said that they are neither good nor bad inherently for the well being of the economy. There are worries that the reduction of imports may be an indication of the domestic demand being soft which is an important driver when it comes to growth.

Trump has been continuously trying to remake the trade relationships of America and initiated the trade wars with their rivals China by imposition of tariffs on other partners as well. He has also been pushing for the renegotiations of the trade deal too with their key partners.

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