WASHINGTON, D.C. – The United States’ international trade deficit, which occurs when a country’s imports exceed its exports, grew in 2020, according to the U.S. Bureau of Economic Analysis and the U.S. Census Bureau.
The trade deficit increased from $576.9 billion in 2019 to $678.7 billion last year as exports declined more than imports, the Bureau of Economic Analysis said on its official blog.
“As a percentage of U.S. gross domestic product, the goods and services deficit was 3.2% in 2020, up from 2.7% in 2019,” the bureau said. “The goods deficit increased from $864.3 billion in 2019 to $915.8 billion in 2020, and the services surplus decreased from $287.5 billion in 2019 to $237.1 billion in 2020.”
The bureau said exports last year of goods and services dropped by $396.4 billion, or 15.7%, to $2,131.9 billion. Exports of goods declined $217.7 billion, and services exports dropped $178.7 billion.
The bureau said exports of goods dropped due to reductions in capital good; industrial supplies and materials; vehicles, parts and engines; and consumer goods. Services exports declined because of decreases in travel and transport.
Imports declined $294.5 billion, or 9.5%, last year to $2,810.6 billion. Goods imports dropped $166.2 billion, and service imports decreased $128.3 billion.