The trade deficit grew by 27% in 2021 to an all-time high of $859.1 billion, according to the Trade Department. People should keep in mind that the trade deficit was $676.7 billion in 2020.
The trade gap represented 3.7% of gross domestic product (GDP), up from 3.2% in 2020. The world’s largest economy grew by 5.7% in 2021, the strongest since 1984, after the federal government provided nearly $6 trillion in pandemic relief, which fueled consumer spending on goods.
Trade deficit and main findings
In 2021, the goods deficit jumped by 8.3% to a record $8.1 trillion. Imports of goods reached an all-time high of $1.8 trillion. Interestingly, they were driven by imports of industrial supplies, as well as materials, which increased to their highest point since 2014.
Food imports were the highest on record, as were those of capital, consumer as well as other goods. In 2021, there were record imports from 70 countries, led by Mexico, Germany, and Canada.
Robust import growth eclipsed a sharp rebound in exports. In 2021, goods exports rose by 23.3% to a record $1.8 trillion. Moreover, exports of industrial supplies and materials, consumer goods, other goods, and petroleum were the highest on record.
The world’s largest economy logged record exports to 57 countries in 2021, led by Mexico, which increased to $276.5 billion. Last year, shipments to China rose to $151.1 billion. In the meantime, exports to South Korea increased to $65.8 billion.
The final boost to the trade deficit came from a 1.8% increase to $80.7 billion in the last of the year.
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