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US trade gap widens in January | US trade gap widens in January |
(about 1 hour later) | |
The US trade deficit has widened as the high cost of oil offset a rise in exports, official figures show. | The US trade deficit has widened as the high cost of oil offset a rise in exports, official figures show. |
The deficit was 0.6% larger at $58.2bn (£28.9bn) in January, after the cost of oil imports hit a record $84 dollars a barrel, the Commerce Department said. | The deficit was 0.6% larger at $58.2bn (£28.9bn) in January, after the cost of oil imports hit a record $84 dollars a barrel, the Commerce Department said. |
The growing trade deficit with China, which has been the cause of much political tension, widened by 8.1%. | The growing trade deficit with China, which has been the cause of much political tension, widened by 8.1%. |
However, slower US economic growth, coupled with a weak dollar, may shrink the deficit this year, analysts said. | However, slower US economic growth, coupled with a weak dollar, may shrink the deficit this year, analysts said. |
The decline in the value of the dollar relative to other currencies, notably the euro, has helped to make US goods cheaper overseas and therefore more attractive. | |
This fuelled demand for US products and services and earnings from exports rose to a record $148.2bn. | |
But the country's imports were also at record highs at $206.4bn, aggravating the trade imbalances. | |
Oil and petrol imports played a large part in this and contributed to the US trade gap with major oil producing nations, including Saudi Arabia and Nigeria, growing to $15.5bn, up from $12.5bn in December. | |
The US trade deficit with China grew by 8.1% to $20.3bn. | |
Some politicians in the US accuse Beijing of keeping its currency artificially low against the dollar to help its exports. |
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