Tuesday, November 25, 2008

Trade developments a positive

Growth in the exports of U.S. goods and services is one of the most positive aspects of the U.S. economy these days. Exports have been growing at double digit rates, thanks to strong demand from the rest of the world. Imports have slowed significantly, thanks in part to lower oil prices, but mainly due to the housing-led slowdown in consumer demand. This all reflects a massive shift in the economy's resources away from housing and towards export-oriented industries, which is a very positive development in itself. That both exports and imports are still following a rising trend relative to GDP is also positive, since that reflects increased global trade, which in turn enhances living standards worldwide because it makes economies more efficient.

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