Washington, April 25, 2024 – The U.S. trade deficit widened to an 11-month high in March as imports fell at a faster pace than exports. The data released by the Commerce Department on Thursday showed that the goods and services deficit rose 1.7% to $91.83 billion in March from a revised $90.30 billion in February. The March deficit was the highest since April 2023.
Imports fell 1.7% to $261 billion in March, while exports declined 3.5% to $169.2 billion. The larger trade deficit subtracted 0.9 percentage point from U.S. gross domestic product in the first quarter. Economists expect the drag from the trade gap to continue in coming months.
Key points:
- The U.S. trade deficit widened to $91.83 billion in March.
- Imports fell 1.7% to $261 billion.
- Exports declined 3.5% to $169.2 billion.
- The trade deficit subtracted 0.9 percentage point from U.S. GDP in Q1.
Implications:
The wider trade deficit is a sign that the U.S. is importing more goods and services than it is exporting. This can have a negative impact on the U.S. economy, as it leads to an outflow of money from the country. Additionally, the deficit can contribute to the growth of the U.S. national debt.
However, it is important to note that a trade deficit is not always bad. It can also be a sign that the U.S. economy is strong and attracting goods and services from around the world.
Additional resources:
- U.S. goods and services trade balance for March 2024: https://www.bea.gov/
