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Four factors contribute to the U.S. trade deficit surge

As a global trade, the United States since the early 70s of last century’s foreign trade deficit started the first time, after which the country’s imports has not been reduced, but showed an increasing momentum. Enter a new century, because the U.S. imports far exceeded exports in foreign trade, so that the U.S. trade deficit is like runaway horses, a rapid increase. Current U.S. foreign trade imports rose rapidly, not whim, but rather a profound economic background.

People all thought that the U.S. trade deficit emerged only recently that, in fact not the case, the first time the U.S. trade deficit is from the last century started in the early 70s. As you know, until after the war until 1970, the United States has been a surplus in foreign trade. However, as international balance of payments have been damaged and other factors as a result, the United States in 1971, its foreign trade exports exceeded imports for the first time, there have been three billion U.S. dollars of foreign trade deficit. Since then, due to increasing imports than exports, so that in the last century, 70 years later, the U.S. trade deficit has been rising. For example, in 1987, the U.S. foreign trade has been as high as 175 billion U.S. dollars of trade deficit, a record the history of U.S. foreign trade since the highest on record. 90’s, the U.S. suffered from 10 years of sustained economic growth, which the U.S. trade deficit declined. Even so, 90 years annual average of U.S. foreign trade deficit has reached more than 100 billion U.S. dollars. Is far greater than the average level of the early 70s. From 2001 to 2002 the first 8 months of USA’s foreign trade imports are greater than exports. In 2002, the first 8 months, for example, the year in January, the U.S. merchandise trade imports 86.481 billion U.S. dollars, the same month, exports 55.014 billion U.S. dollars, imports exceeded exports 31.467 billion U.S. dollars. In April 2002, the U.S. merchandise trade imports 96.998 billion U.S. dollars, the same month, exports amounted to 56.848 billion U.S. dollars, 40.15 billion U.S. dollars of imports over exports. In August 2002, the U.S. foreign trade of imports of goods reached 100.258 billion U.S. dollars, exports 57.984 billion U.S. dollars, imports exceeded exports 42.274 billion U.S. dollars. Needless to say, since 2002, in view of the United States imports more than exports of foreign goods, so the U.S. trade deficit upward trend: in August 2002 than in the U.S. trade deficit in April exceeded 2.124 billion U.S. dollars, compared with the year in January than 10.807 billion U.S. dollars.

Important to note that in recent years, the United States showed an increase of imports is why the momentum is determined by the following reasons:

First, the strong momentum of private consumption, imports rose to become the fundamental driving forces. People know that private consumption accounts for two-thirds of U.S. GDP, and its development trend of foreign imports to the United States is at stake. Since 2002, the U.S. economy despite the twists and turns, but private consumption has been powerful and prosperous. Third quarter of 2002, the U.S. personal consumption expenditures for its contribution to GDP, degree of 2.95, both higher than the first quarter, higher in the second quarter. Moreover, personal consumption expenditures on the contribution of the U.S. GDP is usually higher than other elements. Since 2002, the U.S. private consumption expenditure are generally present 4% -5% growth rate. While private consumption expenditure to maintain strong momentum to the private purchase of imported cars and other commodities. This is a substantial increase in imports of American goods has undoubtedly played a positive role in promoting. electronic cigarette

Second, the U.S. industrial restructuring and accelerated the pace of its imports. The United States is a high-tech-based Western countries, through the last century 90’s industrial restructuring, the traditional industries in general have shifted to overseas, focus on the development of domestic high-tech industries. As a result, U.S. foreign dependence on the traditional industrial products higher, which the traditional industrial exports to foreign countries to the United States is a favorable time. According to statistics, in 2002 from January to September, only in the United States textile imports from 10 countries and regions, China accounted for 15.45 percent, topped the list; followed by Canada, accounting for 12.08%; again in Mexico, accounting for 10 .18%.

Third, the economic downturn in Japan and the European Union, foreign exports. Is not only the Japanese economy in 2002 continued to decline, the EU economy is quite weak. For this reason, these two areas are taken to restrict imports and encourage exports of trade policy. The European Union, for example, according to Eurostat, September 15, 2002 figures released by the year from January to May, the 15 EU member states due to a large number of exports to the U.S., the results of the U.S. trade surplus 13.1 billion euros, compared to 2001 11.4 billion euros during the same period a net increase of 17 billion euros. EU exports to the U.S. increased, but also partly the result of U.S. imports of goods increased. (No suspense in the October stock market is up!)

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Finally, the U.S. high-consumption policies, as its imports rose by one aspect of the driving forces. The United States is a typical high-cost country, and therefore, the residents would prefer debt to the consumer, I do not want the money used for savings, will become an American lifestyle. In addition, the United States ethnic and multi-level of consumption all kinds. The higher income levels, like the import of luxury goods; while low income levels, then a special liking for imported low-grade commodities. This is in large extent, the United States has accelerated the pace of imports into imports more than exports, and thus a large number of trade deficit a very important reason.

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