Quinn
03-28-2007, 04:57 PM
By Associated Press | March 15, 2007
WASHINGTON -- The deficit in the broadest measure of trade hit an all-time high in 2006, and for the first time the United States even ran a deficit on investment income.
The Commerce Department yesterday reported that the imbalance in the current account jumped 8.2 percent to $856.7 billion, representing a record 6.5 percent of the total economy.
It marked the fifth straight year the current account deficit set a record.
Investment flows turned negative by $7.3 billion from a surplus of $11.3 billion in 2005. It was the first time investment income has been negative on records going back to 1929. That means foreigners earned more on their US holdings than Americans earned on their overseas investments.
While the United States has run deficits in its trade in goods every year since 1976, until last year it had still been able to record a surplus in investments.
Analysts said that figure turned negative because of the large amount of US assets that have been transferred to foreign hands over the past three decades to pay for the imported cars, clothing, and electronic goods American consumers love to buy
WASHINGTON -- The deficit in the broadest measure of trade hit an all-time high in 2006, and for the first time the United States even ran a deficit on investment income.
The Commerce Department yesterday reported that the imbalance in the current account jumped 8.2 percent to $856.7 billion, representing a record 6.5 percent of the total economy.
It marked the fifth straight year the current account deficit set a record.
Investment flows turned negative by $7.3 billion from a surplus of $11.3 billion in 2005. It was the first time investment income has been negative on records going back to 1929. That means foreigners earned more on their US holdings than Americans earned on their overseas investments.
While the United States has run deficits in its trade in goods every year since 1976, until last year it had still been able to record a surplus in investments.
Analysts said that figure turned negative because of the large amount of US assets that have been transferred to foreign hands over the past three decades to pay for the imported cars, clothing, and electronic goods American consumers love to buy