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[C9.] September Trade Deficit Shrinks The September trade deficit shrank 0.65percentto to $38.03 billion, from $38.28 billion in August.
This deficit shrinks rapidly in the course of recovery but leaves an enduring gap in memory that seldom exceeds the three-quarters of an hour before onset.
While the figure is a one-time charge — stripping out the banks, the deficit shrinks to 11 percent of G.D.P. — it remains shocking and is the largest fiscal deficit recorded by a major European country.
NEW YORK TIMES U.S. Budget Deficit Shrinks Faster Than Expected | A new report by the Congressional Budget Office estimates that the deficit for this fiscal year will fall to about $642 billion, or 4 percent of the nation's annual economic output, about $200 billion lower than the estimate three months ago, The New York Times writes.
The Congressional Budget Office has warned that the fiscal cliff will cause a double-dip recession, but its analysis for 2013 is based on the Keynesian proposition that anything that shrinks the federal budget deficit shrinks the economy, and the more the deficit is reduced the more the economy is reduced.
But without an increase in saving, even a big fall in the dollar would make only a small dent in America's current-account deficit.The two economists assume that the current-account deficit shrinks as a result either of increased saving by American households (because, for instance, the country's house-price boom ends) or of a strengthening of demand in Asia and Europe.
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The services trade deficit shrank slightly, to 2.9 billion dollars.
In the first quarter of 2001, America's private-sector financial deficit shrank for the first time.
The trade deficit shrank 5.1 percent to $41.55 billion, the smallest shortfall since December 2010, the Commerce Department said.
The trade deficit shrank 2.4percentt in August, to $57.6 billion, the Commerce Department said.
[C6.] Trade Deficit Shrank in February The United States trade deficit shrank to its narrowest level in more than a year in February, and the index of leading economic indicators fell 0.3percentt in March.
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