US records record trade deficit

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In the USA, the Commerce Department has reported that the US trade deficit for 2004 was a record $671.7bn (484bn) - 24.4% above the previous record, which was 2003’s final deficit of $496.5bn.Of that figure, a huge $162 billion was with China alone - the largest ever recorded with a single country, and up 30.5% on last year’s figure.Even still, the deficit in December was 4.9% down on the previous month.The news caused criticism of President Bush’s economic policies from some quarters, though Republicans argued that the figures showed a healthy and growing consumer economy.Even still, markets are concerned as to whether the dollar can continued to be a preferred currency in the light of America’s outstanding debt, and even a strengthening dollar is unlikely to turn the tide of America’s growing debt over this year.