Business

US trade deficit jumps to 12-year high in 2020

The United States' trade deficit surged to its highest level in 12 years in 2020 as the COVID-19 pandemic disrupted the flow of goods and services.

Shipping containers are stacked at the Paul W. Conley Container Terminal in Boston
FILE PHOTO: Shipping containers, including one labelled "China Shipping" and another "Italia," are stacked at the Paul W. Conley Container Terminal in Boston, Massachusetts, U.S., May 9, 2018. REUTERS/Brian Snyder
(Updated: )

Bookmark

WASHINGTON: The United States' trade deficit surged to its highest level in 12 years in 2020 as the COVID-19 pandemic disrupted the flow of goods and services.

The Commerce Department said on Friday that the trade deficit jumped 17.7per cent to US$678.7 billion last year, the highest since 2008. Exports of goods and services tumbled 15.7per cent to their lowest level since 2010. Imports of goods and services dropped 9.5per cent to a four-year low.

The plunge in exports contributed to the economy shrinking 3.5per cent last year, the biggest drop in gross domestic product since 1946. Trade flows have been gradually improving. For December, the trade deficit narrowed 3.5per cent to US$66.6 billion .

Economists polled by Reuters had forecast the trade gap would shrink to US$65.7 billion in December.

Imports of goods rose 1.5per cent to US$217.7 billion in December. Goods exports shot up 4.7per cent to US$133.5 billion.

(Reporting By Lucia Mutikani; Editing by Chizu Nomiyama)

Source: Reuters