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Jun 11, 2012, 04.25 PM IST | Source: Moneycontrol.com

Mecklai graph of the Day: US, China Trade Balance

Mecklai graph of the Day: the U.S. trade deficit narrowed to $50.1 billion in April from $52.6 billion in March as falling crude oil prices helped reduce the nation’s import bill and even a stronger dollar helped US to curtail its trade deficit whereas China’s trade data came in much stronger than expected.

Mecklai graph of the Day - US and China Trade Balance

As per the data released last week the U.S. trade deficit narrowed to $50.1 billion in April from $52.6 billion in March as falling crude oil prices helped reduce the nation’s import bill and even a stronger dollar helped US to curtail its trade deficit whereas China’s trade data came in much stronger than expected.

In spite of such strong trade figures China, the world’s second-biggest economy, is cooling and is widely expected to dip below 8 percent YoY in the second quarter and growth in China’s trade balance has not been significant in comparison with its previous trade figures. As far as US trade figures are concerned, stagnation in Europe and cooling growth in China may reduce exports, further deepening US trade deficit. With the global slowdown gripping the major economies, the trade surplus nation are bound to see their surpluses shrink while economies with trade deficit may not see their deficits bloat further as slowdown in consumption is bound to reduce their imports.

The below graph shows the trade balance figures of US and China for past 6 months.

 

 

 

 

 

 

 

 

 

 

 

 

 

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