US 2005 Trade Deficit Jumped to $725.8 billion; Petroleum Cost Largest Single Factor
10 February 2006
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| The growing trade gap. Click to enlarge. |
According to figures released today by the US Department of Commerce, the US trade deficit—the difference between good and services imported and exported—rose 17.5% in 2005 to a record $725.8 billion. In 2005, the US posted exports of $1,271.1 billion and imports of $1,996.9 billion.
The largest single contributing component was the increased cost of petroleum, related goods and natural gas. The trade deficit in those combined goods increased by $73 billion (40%) to $258 billion—35.5% of the total trade deficit.
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| The petroleum and natural gas trade deficit. Click to enlarge. |
In 2005, the US imported $284 billion worth of crude oil, related petroleum products and natural gas, up 39% from 2004 imports. The US exported $25.4 billion in those same categories, up 32.4% from 2004, resulting in the total trade deficit in 2005 in these goods of $258 billion.
The US trade deficit with OPEC countries in 2005 rose to $92.7 billion, with US trade with Venezuela topping the list at $27.6 billion, followed by Nigeria ($22.6 billion) and Saudi Arabia ($20.4 billion).
The US trade deficit with China rose to a record $201.6 billion in 2005—the highest deficit ever recorded with any country—an increase of 24.5% over the prior record set in 2004 of $161.9 billion. The United States also recorded record deficits with Japan at $82.7 billion. Until it was surpassed by China in 2000, Japan was the country that had the largest trade gap each year with the United States.
As a percentage of US gross domestic product, the total goods and services deficit increased from 5.3% in 2004 to 5.8% in 2005.
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"The trade deficit in those combined goods increased by $73 billion"
Can you imagine how much progress (and value) could be created by investing that in efficiency and petro/nuke alternatives?
Instead, we just threw it away and will again this year.
Posted by: Joseph Willemssen | 10 February 2006 at 10:42 AM
keep driving your gas guzzers for what?
Posted by: philmcneal | 10 February 2006 at 12:57 PM
Whatever big oil wants, big oil gets. For the next 3 years, expect this to get worse before it gets better.
Posted by: Texan | 10 February 2006 at 06:49 PM
Because of America's relative wealth, population, and overall purchasing power, America finds itself in a deficit. But beware not to assume that deficits are bad altogether. Although I am an advocate of "going green", I don't buy into the fear/hype of deficits. There's more to economics than just this.
Posted by: Ed | 13 February 2006 at 12:02 PM