Commentary: Why This Trade Gap Isn't So Terrifying

Strong growth, low inflation--and a substantial trade deficit? In a blue sky of upbeat economic statistics, the trade numbers have been a dark cloud. The latest figures, released by the Census Bureau on May 21, show that the U.S. trade deficit narrowed a bit in March from February, thanks to stronger exports. But so far this year, the trade deficit in goods is running at an annual rate of $203 billion, up from $133 billion in 1993.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.