Over on MetalMiner…Exports Rise but so do Imports

Export figures have made encouraging reading last year and this. According to David Huether, chief economist at the National Association of Manufacturers and reported in a Businessweek.com article exports rose 14% in the 12 months through February.

Does that mean the trade deficit that had so suddenly shrunk in 2008 as imports slumped has continued to contract? No unfortunately not. As the economy has grown at an estimated annual rate of 3.2% in the first three months of this year exports have grown at 5.8% but imports have grown at 8.9% according to Commerce Dept. figures quoted in the article. In fact the recession although originally appearing to help the trade deficit by cutting imports has probably exacerbated it in the longer term as manufacturing operations have closed and are unlikely to be replaced. Read more here...

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