THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Saturday, February 18, 1995 TAG: 9502180387
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: ASSOCIATED PRESS
DATELINE: WASHINGTON LENGTH: Short : 43 lines
The United States suffered its worst merchandise trade deficit in history last year as a surge in imports swamped a record level of exports.
The Commerce Department reported Friday that the deficit in merchandise trade soared by 25.4 percent last year to $166.29 billion, compared with a 1993 deficit of $132.58 billion.
While President Clinton has cited big trade deals as one of his major achievements since taking office, the new figures demonstrated in stark terms the challenges that the United States faces in the global economy.
America's deficits with Japan and China both set records last year. The Japanese imbalance climbed 11 percent to $65.7 billion while the trade gap with China surged at an even faster rate of 30 percent to $29.5 billion.
These deficit figures count only trade in merchandise. If services also are included, the 1994 trade imbalance totals $108.11 billion, 43 percent higher than a $75.73 billion goods and services deficit in 1993.
In a glimmer of hope that better days lie ahead, the deficit in merchandise and services narrowed in December to $7.34 billion, the smallest monthly deficit in nine months.
Many economists believe America's trade fortunes will improve this year as improving economies overseas boost U.S. exports while America's economic growth rate slows, thus cutting demand for foreign goods.
``I believe December gives us a hint of the developments that lie ahead,'' said Stephen Roach, an economist at Morgan Stanley & Co. ``Our export markets, with the important exception of Mexico, are firming up.'' ILLUSTRATION: GRAPHIC
[For a copy of the graphic, see microfilm for this date.]
SOURCE: Commerce Dept,; Knight-Ridder Tribune
KEYWORDS: TRADE DEFICIT by CNB