Exports decreased by 0.3% and imports decreased by 1.1% due to falling oil prices
GDP is expected to turn upward for the first time in 3 quarters as trade deficit narrows
The U.S. trade deficit in August fell to $67.4 billion, the lowest in 15 months. Economists surveyed by the Wall Street Journal expected a deficit of $67.7 billion.
According to Market Watch on the 5th (local time), the U.S. Department of Commerce announced that U.S. exports fell 0.3% to $258.9 billion in August and imports fell 1.1% to $326.3 billion due to lower oil prices.
The US trade deficit plummeted following hitting a record $106.9 billion in March. In particular, exports increased and imports decreased due to the fall in oil prices.
Prior to this, the August goods trade deficit announced at the end of last month was 87.4 billion dollars, down from 90.2 billion dollars in the previous month.
When the trade deficit narrows, there is a growth factor in GDP. The narrowing of the trade deficit in August would have the effect of adding 3 percentage points to third-quarter GDP, experts predicted.
The fiscal deficit was also down 4.3% from $70.5 billion in July.
Economists expect the narrowing of the trade deficit in August will set the US GDP up for the first time in three quarters, and that claims that the US is in a recession will be put to an end for the time being.
However, the trend of the trade deficit in the coming months is difficult to predict. A strong dollar may hurt US exporters and increase imports with increased price competitiveness, but it is analyzed that import demand may also decrease due to concerns regarding an economic slowdown.
By Kim Jung-ah, staff reporter [email protected]
