Trade Deficits

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Trade Deficits

Today we share a series of charts on trade deficits.  

Reminder: These charts come to us compliments of independent economist Fritz Meyer, a seasoned economic and markets analyst whose insights appear regularly on CNBC, Bloomberg TV and the Fox Business Network.  Here is what Fritz has to say about trade deficits:

… A trade deficit isn’t a debt that must be repaid. It is often a sign of economic prosperity.

… It means the purchasing power of the currency is strong, and consumers are rich and optimistic enough to spend.

… Expansions are marked by increasing trade deficits.

… Recessions are accompanied by shrinking trade deficits.

Clicking on each chart will maximize it in your browser.

how to think about trade deficits

Trade deficits vs. recessions

Sheri Iannetta Cupo
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