U.S. Trade Deficit Jumps to Record $435,200 Million in 2002 - (Largest gaps with Western Europe, China) (1160)
usinfo.state.gov 20 February 2003
Washington – The U.S. trade deficit jumped 21.5 percent in 2002 to a record $435,200 million, reflecting continued weakness in the global economy and a strong U.S. dollar.
Throughout the year rising imports, particularly for such consumer goods as pharmaceuticals and video equipment, combined with slumping U.S. exports to set the stage for the widening gap, the Commerce Department reported February 20. Services exports, long a strong sector in the U.S. economy, rose just 4 percent during the year.
The growing trade gap was led primarily by higher bilateral deficits with Western Europe, China and Mexico. The largest increase, $24,481 million or almost 38 percent, to $89,218 million was with Western Europe. The imbalance with China jumped $20,019 million, or 24 percent, to $103,115 million. Imports from China increased to $125,200 million, only exceeded by goods coming in from U.S. neighbors Canada and Mexico.
The department also reported a new record monthly deficit -- a seasonally adjusted $44,200 million in December -- up 10.5 percent from the previous month. The December gap showed a goods deficit of $48,400 million and a services surplus of $4,100 million. Exports decreased 2.6 percent to $81,200 million while imports increased 1.7 percent to $125,400 million. A $2,200 million plunge in capital goods exports was the largest factor contributing to the December export decline.
Economists say that continued large U.S. deficits are yet another sign that the United States remains the engine for global growth. Despite repeated calls by Bush administration officials and by the previous U.S. administration for actions in Europe and Japan to spur growth, U.S. expansion continues to outpace that of its major trading partners.
The department reported that in 2002 U.S. exports of goods were down $35,600 million, or 5.5 percent, from 2001. Imports of goods were up $22,600 million, or close to 2 percent, from 2001. Among the exports that have declined most were capital goods, primarily computer accessories, telecommunication equipment and semiconductors; consumer goods; and industrial supplies and materials. The largest increases in the imports were registered in consumer goods, mostly pharmaceuticals, household goods and video equipment, and cars and auto parts and engines.
Exports of services went up $11,100 million from 2001, propelled mostly by increases in "other private services" such as business, professional, technical, insurance and financial services, and in royalties and license fees. Imports of services also went up $30,900 million, or 14 percent, boosted mostly by surges in other private services, direct defense expenditures and royalties and license fees.
Following are some key figures:
U.S. GOODS AND SERVICES EXPORTS, IMPORTS AND TRADE BALANCE Millions of dollars, on a balance of payments basis, seasonally adjusted
Trade
balance Exports Imports
Jan.-Dec. 2000 -378,681 1,064,239 1,442,920 Jan.-Dec. 2001 -358,290 998,022 1,356,312 Jan.-Dec. 2002 -435,216 972,995 1,408,211
December 2001 -27,279 77,477 104,756 December 2002 -44,242 81,186 125,427
U.S. GOODS EXPORTS, IMPORTS AND TRADE BALANCE Millions of dollars, on a balance of payments basis, seasonally adjusted
Trade
balance Exports Imports
Jan.-Dec. 2000 -452,423 771,994 1,224,417 Jan.-Dec. 2001 -427,165 718,762 1,145,927 Jan.-Dec. 2002 -484,353 682,586 1,166,939
December 2001 -31,534 54,991 86,525 December 2002 -48,366 55,575 103,940
U.S. SERVICES EXPORTS, IMPORTS AND TRADE BALANCE Millions of dollars, on a balance of payments basis, seasonally adjusted
Trade
balance Exports Imports
Jan.-Dec. 2000 73,742 292,245 218,503 Jan.-Dec. 2001 68,875 279,260 210,385 Jan.-Dec. 2002 49,137 290,409 241,272
December 2001 4,255 22,486 18,231 December 2002 4,124 25,611 21,487
U.S. GOODS EXPORTS, IMPORTS AND TRADE BALANCE, BY COUNTRY Millions of dollars, on a Census basis, not seasonally adjusted
Bilateral 2002 2002
balance exports imports
Total -470,104 693,517 1,163,621
North America -86,962 258,360 345,322 Canada -49,760 160,829 210,590 Mexico -37,202 97,531 134,732
Western Europe -89,218 157,080 246,298 Euro Area -66,878 105,844 172,722 European Union -82,368 143,747 226,115 Austria -1,394 2,424 3,817 Belgium 3,508 13,343 9,835 Finland -1,907 1,537 3,444 France -9,389 19,019 28,408 Germany -35,852 26,628 62,480 Italy -14,201 10,089 24,290 Netherlands 8,471 18,344 9,864 Spain -452 5,226 5,678 Sweden -6,133 3,154 9,287 United Kingdom -7,617 33,253 40,870 Other EU -17,401 10,741 28,142
European Free Trade Association -6,324 9,422 15,746 Norway -4,423 1,407 5,830 Switzerland -1,600 7,782 9,382 Other EFTA -300 233 533 Other Western Eur. -526 3,910 4,437
Eastern Europe, Former Soviet Reps. -8,283 6,599 14,883 Hungary -1,951 688 2,639 Poland -414 687 1,101 Former Sov. Reps. -4,503 4,113 8,615 Russia -4,426 2,399 6,825 Other FSR -76 1,714 1,791 Other E.Europe -1,416 1,112 2,528
Pacific Rim -215,005 178,561 393,567 Australia 6,606 13,084 6,478 China -103,115 22,053 125,168 Japan -70,055 51,440 121,494 Newly Industrialized Countries -22,073 69,823 91,896 Hong Kong 3,283 12,612 9,328 South Korea -12,979 22,596 35,575 Singapore 1,429 16,221 14,793 Taiwan -13,805 18,394 32,199 Other Pacific Rim -26,369 22,162 48,531
South/Central -17,902 51,643 69,544 America Argentina -1,595 1,591 3,185 Brazil -3,403 12,409 15,812 Colombia -2,018 3,589 5,606 Other S/C America -10,886 34,054 44,940
OPEC -34,482 18,852 53,334 Indonesia -7,063 2,581 9,644 Nigeria -4,907 1,057 5,964 Saudi Arabia -8,364 4,778 13,143 Venezuela -10,662 4,447 15,108 Other OPEC -3,486 5,989 9,475
Other countries -36,397 28,956 65,353 Egypt 1,514 2,866 1,352 South Africa -1,502 2,525 4,027 Other -36,410 23,564 59,974
NOTE: Data on a Census basis reflect movement of goods into and out of the United States through U.S. Customs Service stations. Balance-of-payments basis data adjust Census data to include products that bypass Customs, such as exports of military aircraft and imports of electricity from Canada.
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