The United States (U.S.) trade deficit is reported to have soared to its highest level in 2021 as the import sector rose sharply amid the business sector starting to meet domestic demand.
The Commerce Department said on Tuesday that the trade deficit rose 27.0% last year to an all -time high of $ 859.1 billion. The deficit is at $ 676.7 billion in 2020.
According to economist Christopher Rupkey U.S. trade will not return to normal until the spread of the epidemic begins to slow and life returns to normal.
The trade gap represents 3.7% of gross domestic product, up from 3.2% in 2020. The economy grew 5.7% in 2021, the strongest since 1984, after the government provided nearly $ 6 trillion in pandemic aid, which drove consumer spending on goods.
The goods deficit rose 18.3% to a record $ 1.1 trillion last year. Imports of goods hit an all -time high of $ 1.8 trillion. It was driven by imports of industrial supplies and materials, which rose to the highest level since 2014.
Strong import growth overshadowed the sharp recovery in exports. Exports of goods jumped 23.3% to a record $ 1.8 trillion. Exports of industrial supplies and materials, food, consumer goods, other goods and petroleum were the highest on record.
The latest stimulus to the trade deficit recorded a 1.8% increase to $ 80.7 billion in December.
