Higher Exports Aid U.S. Trade Balance

Journal of Accountancy, September 1991 | Go to article overview

Higher Exports Aid U.S. Trade Balance


HIGHER EXPORTS AID U.S. TRADE BALANCE

In the first four months of 1991, the United States posted a trade deficit of $21.7 billion, a hefty 36% below the $33.8 billion deficit recorded in the first four months of 1990. On an annualized basis, the U. S. trade deficit for 1991 is currently running at a rate of about $65 billion, less than two-thirds of 1990's $101.7 billion and less than half of the record gap of $152.1 billion posted in 1987.

Strength in U.S. exports has been the key to the improved trade balance performance. Despite slower economic activity abroad, exports rose by 7% in the first four months of 1991, while imports declined by about 2% as a result of the recession here.

The United States improved its trade performance with all its major trading partners, with the exceptions of Canada, China and the Organization of Petroleum-Exporting Countries nations. …

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Higher Exports Aid U.S. Trade Balance
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