U.S trade deficit rose by 17.7% to $678.7 billion in 2020, the highest since 2008, according to the Bureau of Economic Analysis press release. The jump in the trade deficit was brought by the COVID-19 pandemic, which disrupted the flow of goods and services.
- Exports of goods and services fell 15.7% to their lowest level since 2010.
- Imports of goods and services tumbled 9.5% to a four-year low.
- The fall in exports led to the economy contracting by 3.5% last year, the biggest drop since 1946.
- Trade flows have been improving, with the December’s deficit narrowing 3.5% to $66.6 billion, worse than expected $65.7 billion.
- December also saw imports of goods gain 1.5% to $217.7 billion while goods exports went up 4.7% to $133.5 billion.
U.S stocks are currently gaining as the dollar losses. SPY is up 0.46%, QQQ is up 0.17%, EURUSD is up 0.47%