In an unexpected development that has stumped trade analysts and business experts, America’s international goods deficit has shrunk significantly more than what was expected during the new President Donald Trump’s first full month in office. The outcome is that the US economy can expect to have a good showing than what was expected earlier in the year’s first quarter.
According to official figures, the goods deficit stood at $64.8 billion in February 2017. This is down by around $4.1 billion representing a drop of 5.9 percent from January 2017 figures. While exports dipped southwards by $100 million, imports also fell but by a more serious margin of $4.2 billion.
Many trade experts attribute this to the country’s spike in trade shortfall of January 2017 which quickly fell back to the earlier level in February to match the figures registered at the end of year 2016.
The surprise element is not the drop in goods deficit which most analysts expected to happen, but the extent of fall. With the dollar not holding steady and wavering to a broad range, this was an unavoidable development say many experts. America needs a strong dollar to make imports attractive and affordable.