The U.S. trade goods deficit rose to a record high in March, according to a Commerce Department report on April 27, as the value of imports dwarfed that of exports, reflecting skyrocketing inflation.
Last month showed solid increases in retail and wholesale inventories, which may somewhat ease the effect of the trade deficit on domestic GDP growth.
Many economists predict that U.S. GDP grew a mere 1 percent in the first quarter following a 6.9 percent gain in the fourth quarter of 2021.
Demand for imports have increased greatly since 2021, due to the U.S. economy’s rapid recovery from the pandemic, but the uptick in demand and rising prices have the downside of accelerating high inflation rates.
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