The US current account balance has been in almost continuous deficit since 1970. As of 2005, trade deficit reached $ 725.8 billion, or 6 percent of the GDP. Since 1970, the US is the only country to have trade deficit and current account deficit in excess of 2.5 percent and 5 percent of GDP respectively. Many prominent economists consider this issue important because of its expected effects on the US economy and of its possible ramifications on the rest of the ...
