Trade Gap Widens, Yet Outlook Is Upbeat; Economists Are Hopeful Exports Will Extend Rise And Oil Prices Will Fall
WASHINGTON -- Even as the U.S. trade gap widened in December for the first time in four months, economists said trade is likely to contribute to growth in coming months, as exports continue on an uptrend and oil prices, which surged in December, fall back.</br></br>Economists have long predicted that as economic demand among top U.S. trading partners caught up with rapid U.S. economic growth, the U.S. trade deficit would shrink.</br></br>"The wider gap in December does not overturn the view that the deficit has peaked," said Nigel Gault, an economist at consulting firm Global Insight.</br></br>The U.S. deficit in trade of goods and services in December grew 5.3% from the previous month to $61.18 billion, the Commerce Department reported yesterday. That marked the first monthly widening of the deficit since August. The shortfall for all of 2006 grew 6.5% to a high of $763.59 billion. It was the trade deficit's fifth yearly record in a row.</br></br>The deficit with China, by far the largest U.S. trading partner, also hit a record for the year at $232.55 billion, sparking calls for action from the Democratic-controlled Congress.