Trade deficit tops $1 trillion for first time
The U.S. trade deficit for goods surpassed $1 trillion for the first time in 2021 as the country saw an economic rebound after months of hardship amid the COVID-19 pandemic.
The trade gap in goods increased to $1.08 trillion in 2021, according to MarketWatch, which was up from $893.5 billion the year before.
The international trade deficit rose three percent in December, according to an advanced economic indicators report from the Census Bureau, increasing from $98 billion in November to $101 billion in December. That jump was the largest monthly growth on record, according to MarketWatch, and the first time the statistic has surpassed $100 billion, Reuters noted.
The trade deficit can in part be attributed to the U.S. economy’s rebound this year amid the pandemic, according to MarketWatch. Americans received significant stimulus support.
Demand for U.S. exports, however, has not increased as quickly because other nations are not as far ahead on their economic recoveries, the financial website noted.
Goods imports rose by 2 percent in December, according to the Census Bureau report, bringing the number to $258.3 billion. Exports of goods increased by 1.4 percent last month, increasing to $157.3 billion.
The Census Bureau report comes one day before advance fourth-quarter gross domestic product data is set to be released, according to Reuters.