The trade deficit: Star-spangled spenders

Posted: January 3, 2014 in economy
Tags: , ,

UK Only Article: 
standard article

Issue: 

Europe’s Tea Parties

Fly Title: 

The trade deficit

Rubric: 

As Americans cool on imports, the current-account deficit shrinks

Location: 

WASHINGTON, DC

Main image: 

20140104_USD001_0.jpg

ANY American who bought a top-of-the-range Maytag Maxima front-loading washing machine a few years ago contributed in his own small way to the country’s persistent trade deficit; the machine was made in Germany. Not so anyone who has bought one in the past six months, because Whirlpool, the manufacturer, has since moved production to a plant in Clyde, Ohio.
That shift helps explain a remarkable improvement in America’s external accounts. At the end of 2005 the current-account deficit reached 6.2% of GDP, the sign of a society living dangerously beyond its means. But by the third quarter of 2013 it had dropped to 2.2%, the lowest since 1998, a level it could easily sustain indefinitely.

The deficit has …

via Economic Crisis http://www.economist.com/news/united-states/21592643-americans-cool-imports-current-account-deficit-shrinks-star-spangled-spenders?fsrc=rss

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