US trade deficit explodes to record level
AFP,Washington
The broadest measure of the US trade deficit exploded to a record 144.9 billion dollars in the first quarter of 2004, the Commerce Department said Friday. The current account deficit -- tracking trade, income from investments and foreign workers, and one-way transfers -- mushroomed from a gap of 127.0 billion dollars the previous quarter. It easily surpassed the 140-billion-dollar deficit predicted by private economists. The dollar dropped immediately. The euro rose to 1.2076 dollars from 1.2045 a few minutes before the news. A breakdown for the quarter showed: -- The shortfall in trade of goods and services bulged 9.1 percent to 136.9 billion dollars. -- The United States' surplus in income shrank 21.6 percent to 12.7 billion dollars. -- One-way transfers resulted in a net outflow of 20.6 billion dollars, up 17.0 percent from the previous quarter.
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