US trade deficit sets new record at $950 billion

• 

According to figures released by the Commerce Department on Tuesday, the US trade deficit recorded a new high of about $950 billion in 2022 as imports rose and exports declined.

Imports from trading partners of the United States increased by $556.1 billion from 2021 to $3.96 trillion, with consumer goods and vehicles being the primary imports.

Exports amounted to a total of $3.01 trillion, with a $453.1 billion increase from the previous year, with the majority of these goods being industrial supplies and materials.

The discrepancy resulted in a trade deficit of $948.1 billion, a $103 billion increase from the $845 billion in 2021.

Despite the enormous deficit, researchers assessed that trade had contributed positively to the development of the GDP in 2022 since US exports had outperformed imports in the second half of the year.

After increasing by 5.9% in 2021, real GDP expanded by a noticeably slower rate of 2.1% in 2022.

Back in August, following the expiration of pandemic-related aid in June, the US treasury department was reportedly still facing high budget deficits due to major spending.

Reports released by the Treasury Department show that the US federal budget deficit stood at $211 billion in July, with total receipts amounting to $269 billion against outlays of $480 billion.

Read more: US faces budgetary deficit of $211 billion

The US commerce department reported back in May 2022  that the US trade gap has reached its highest level ever recorded amid a surge in imports of goods and services in March, driven mainly by huge increases in the purchase of laptops, computers, automobiles, furniture, and clothing.

Imports reached an all-time high of $351.5 billion, meaning that the trade deficit surged by more than 22% to $109.8 billion.

Read more: US trade deficit hits new high with imports climbing