Washington, Feb 8 (FN Agency) The US trade deficit hit a record high of $859.1 billion in 2021 as imports sharply overtook exports in an economy still struggling to recover from the impact of the coronavirus pandemic measures, Commerce Department data showed on Tuesday. “For 2021, the goods and services deficit was $859.1 billion, up $182.4 billion from $676.7 billion in 2020,” the Commerce Department said in a statement that detailed the trade balance for December as well for all of 2021.
A scrutiny of the Commerce Department’s historical data showed that the annual figure for 2021 represented the highest US trade deficit on record. In December, the trade deficit increased by $1.4 million, or 1.8 per cent, to reach $80.7 billion from $79.3 billion the previous month. Economists surveyed by US media had projected a deficit of $83.0 billion. The Commerce Department said the December exports stood at $228.1 billion, up $3.4 billion more than the November exports. December imports were at $308.9 billion, higher by $4.8 billion from the previous month. Supply chain disruptions from the two-year long pandemic have severely impacted the timely delivery of commodities and other critical supplies needed by manufacturers, delaying deliveries to stores as well as overseas buyers.
On the other hand, importers have been buying more than their pre-pandemic pace to stock up depleted shelves. The US economy grew by 5.7 per cent in 2021, expanding from the 3.5 per cent contraction in 2020 caused by the coronavirus pandemic measures.