Recovery Side Effect: Trade-Deficit Concerns
What the recession giveth, the recovery taketh away.</br></br>One welcome side effect of the recent downturn was a substantial narrowing of the U.S. trade deficit. In less than a year, from July 2008 through May 2009, the monthly deficit shrank from $64.9 billion to $25.7 billion.</br></br>That is a level not seen since 1999. And the full-year 2009 deficit of $378.9 billion was the smallest since 2001.</br></br>While the causes were worrisome--in particular, a slowing of imports due to slumping U.S. demand--it helped ease a strain on the nation's finances.</br></br>But, as the recovery progresses, that relief looks fleeting.