http://www.theguardian.com/business/economics-blog/2014/dec/23/uk-current-account-deficit-osborne-no-plan
This article focuses on the growing trade deficit in the United Kingdom. The chancellor has put in a long term economic plan and it has not taken as much as he would like. Growth is relying on consumer spending and they have a high budget. At this time, the deficit takes up 6% of GDP because they rely to heavily on imported goods. Britain is no different than other countries with deficit problems but they do have a plan that is not working. Because the plan is failing, the country is more vulnerable. It is also concerning because the deficit accounts for foreign investments; which have not been doing well. This issue is alarming because I thought that the UK's economy was strong. I was not surprised that the exports have fallen because it has happened in the U.S. and other developed countries. I hope that the chancellor and the Treasury can find a solution that will fix all parts of this issue.
Friday, January 16, 2015
United States Balance of Trade- Trading Economics
http://www.tradingeconomics.com/united-states/balance-of-trade
This article explains how the trade deficit has differed of the last 65 years. It explains why it was so high or low and how to change it in the future. In 2012, the trade deficit was at an 11 month low; 39 billion dollars. After reading the other articles, I think that reducing the trade deficit is very important and that month to month goals are the way to accomplish the goal. That being said, this fact was a step in the right direction. This particular deficit was fueled by a lack of crude oil imports. Even though the U.S. imports many goods, decreasing crude oil imports could cause a major decrease. While decreasing imports is important; maintaining or growing exports is also a substantial part of the trade deficit. In November, exports fell by one percent and services also decreased. I think that this article gave concise and accurate information about a complex topic. If the U.S. accurately keeps track of the exports and imports, we will be able to reduce the trade deficit.
This article explains how the trade deficit has differed of the last 65 years. It explains why it was so high or low and how to change it in the future. In 2012, the trade deficit was at an 11 month low; 39 billion dollars. After reading the other articles, I think that reducing the trade deficit is very important and that month to month goals are the way to accomplish the goal. That being said, this fact was a step in the right direction. This particular deficit was fueled by a lack of crude oil imports. Even though the U.S. imports many goods, decreasing crude oil imports could cause a major decrease. While decreasing imports is important; maintaining or growing exports is also a substantial part of the trade deficit. In November, exports fell by one percent and services also decreased. I think that this article gave concise and accurate information about a complex topic. If the U.S. accurately keeps track of the exports and imports, we will be able to reduce the trade deficit.
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