Yet another record trade deficit for the Bush assministration.
The deficit in the broadest measure of international trade rose to an all-time high of $195.1 billion from January through March of this year as the country sank deeper into debt to Japan, China and other nations.
The Commerce Department reported Friday that the deficit in the current account rose by 3.6 percent from the previous quarterly record, an imbalance of $188.4 billion in the final three months of 2004.
The current account deficit has risen to record heights in recent years as America’s demand for foreign goods and servicers has soared, raising worries about the country’s ability to continue financing a trade deficit at such heights.
“The seemingly insatiable U.S. demand for imports continues to drive the current account deficit higher,” said Nigel Gault, U.S. economist at Global Insight. “At present, the rest of the world is happy to keep financing the deficit — but that won’t be the case indefinitely.”