February 09, 2022
The Goods and Services Deficit Increased $182.4 billion Year to Year.
The United States Census Bureau and the United States Bureau of Economic Analysis stated that the December goods and services deficit was $80.7 billion, up $1.4 billion from the revised $79.3 billion in November.
December exports totaled $228.1 billion, an increase of $3.4 billion above November exports. December imports totaled $308.9 billion, up $4.8 billion from November. The December rise in the goods and services deficits reflected an increase of $3.2 billion in the goods deficit to $101.4 billion and an increase of $1.8 billion in the services surplus to $20.7 billion.
The goods and services deficit in 2021 climbed by $182.4 billion, or 27.0 percent, over 2020 levels. Exports climbed $18.5 billion, or $394.1 billion. Imports climbed by $576.5 billion, or 20.5 percent, during the quarter.
Moving Averages of Three Months
For the three months ended in December, the average goods and services deficit dropped by less than $0.1 billion to $75.5 billion. December average exports grew by $7.1 billion to $225.6 billion. December’s average imports jumped by $7.0 billion to $301.2 billion.
The average goods and services deficit grew $9.9 billion year over year during the three months ended December 2020. Exports on average increased by $39.4 billion in December 2020. Imports on average increased by $49.3 billion in December 2020.
Exports
December’s goods exports climbed by $2.0 billion to $158.3 billion. Exports of goods grew by $2.2 billion on a Census basis. Consumption of consumer goods grew by $1.2 billion.
Capital goods expenditures climbed by $0.9 billion. Vehicles, components, and engines for automobiles grew by $0.8 billion. Industrial materials and supplies increased by $0.5 billion. Foods, feeds, and drinks had a $1.1 billion decline. Moreover, balance of payments adjustments on a net basis declined by $0.2 billion.
Whereas in December, exports of services climbed by $1.4 billion to $69.9 billion. Transportation expenditures climbed by $0.6 billion and travel expenditures climbed by $0.5 billion.
Imports
Imports of goods climbed by $5.2 billion in December to $259.7 billion. Imports of goods grew by $5.3 billion on a Census-based basis. Consumer goods had a $5.2 billion gain. Vehicles, parts, and engines for automobiles climbed by $2.4 billion. Capital goods expenditures climbed by $2.3 billion. There was a $3.2 billion reduction in industrial supply and materials. Furthermore, balance of payments adjustments on a net basis declined by $0.2 billion.
In December, service imports declined by $0.4 billion to $49.2 billion. Travel expenditures declined by $0.5 billion and transportation expenditures increased by $0.1 billion.
Monthly – Census-Based Goods by Selected Countries and Areas
The December numbers indicate that South and Central America ($5.4 billion), Hong Kong ($1.9 billion), Brazil ($1.2 billion), Singapore ($0.8 billion), and the United Kingdom ($0.6 billion) all had surpluses. China ($34.1), the European Union ($16.3), Mexico ($11.0), Germany ($5.3), Japan ($5.0), Canada ($4.2), India ($3.9), Taiwan ($3.8), South Korea ($3.7), Italy ($3.1), France ($0.8), and Saudi Arabia ($0.7) all have deficits in the billions of dollars.
In December, the trade imbalance with China grew by $6.0 billion to $34.1 billion. Exports declined by 2.2 billion dollars to $11.8 billion, while imports grew by 3.8 billion dollars to $45.9 billion. Whereas in December, the trade imbalance with South Korea grew by $1.4 billion to $3.7 billion. Exports fell $0.9 billion to $4.8 billion, while imports gained 0.5% to $8.5 billion. The United States’ deficit with the European Union dropped by $3 billion to $16.3 billion in December 2021. Exports rose $0.7 billion to $25.1 billion, while imports fell $2.4 billion to $41.4 billion.
Annual Report for the Year 2021
Exports, Imports, and the Balance of Payments
The goods and services deficit for 2021 was $859.1 billion, an increase of $182.4 billion from $676.7 billion in 2020. Exports totaled $2,528.5 billion, an increase of $394.1 billion over 2020. Imports totaled $3,387.7 billion, an increase of $576.5 billion over 2020.
The rise in the goods and services deficits in 2021 included an increase of $168.7 billion, or 18.3 percent, in the goods deficit to $1,090.7 billion and a drop of $13.8 billion, or 5.6 percent, in the services surplus to $231.5 billion.
In 2021, the goods and services deficit increased to 3.7 percent of current-dollar GDP, up from 3.2 percent in 2020.
Exports
In 2021, goods exports climbed by $333.2 billion to $1,762.0 billion. Exports of goods grew by $329.6 billion on a Census basis. There was a $169.6 billion increase in industrial supplies and materials. Investment in capital goods grew by $59.3 billion. Consumption of consumer goods grew by $47.3 billion. Foods, feeds, and drinks had a $25.9 billion gain. Vehicles, parts, and engines for automobiles grew by $15.7 billion. Balance of payments adjustments on a net basis rose by $3.5 billion.
In 2021, service exports will grow by $60.9 billion to $766.6 billion. Other business services had a $26.8 billion gain. Financial services had a $17.7 billion rise.
Imports
Imports of goods grew by $501.8 billion in 2021, reaching $2,852.6 billion. Imports of goods grew by $497.0 billion on a Census-based basis. As it regards imports, there was a $169.7 increase in industrial supplies and materials. Consumption of consumer goods grew by $126.8 billion. Investment in capital goods grew by $117.5 billion. Vehicles, parts, and engines for automobiles grew by $36.8 billion. Foods, feeds, and drinks had a $27.8 billion gain. Moreover, balance of payments adjustments on a net basis rose by $4.9 billion.
In 2021, service imports will grow by $74.7 billion to $535.0 billion. Transport climbed by $32.1 billion and travel climbed by $22.0 billion.
Goods by Selected Countries and Areas – On the Basis of the Census
The 2021 figures show surpluses, in billions of dollars, with South and Central America ($53.6 billion), Hong Kong ($25.8), the Netherlands ($18.2), Brazil ($15.6), Australia ($14.0), and Belgium ($12.7) all have surpluses in the billions of dollars. China ($355.3 billion), the European Union ($219.6), Mexico ($108.2), Germany ($70.1), Japan ($60.2), Ireland ($60.2), Canada ($49.5), Malaysia ($41.0), Taiwan ($40.2), Italy ($39.3), Switzerland ($39.0), Thailand ($34.7 billion), India ($33.1 billion), South Korea ($29.2), Russia ($23.3), France ($20.3), and Indonesia ($17.6) all reported deficits in billions of dollars.
In 2021, the trade imbalance with China grew by $45.0 billion to $355.3 billion. Exports grew $26.6 billion to $151.1 billion, while imports grew $71.6 billion to $506.4 billion. By 2021, the deficit with the European Union will have risen by $35.4 billion to $219.6 billion. Exports climbed by $40.4 billion to $271.6 billion, while imports rose by $75.8 billion to $493 billion.
By 2021, the gap with Switzerland will have shrunk by $17.8 billion to $39.0 billion. Exports rose by $5.9 billion to $24.0 billion, while imports fell by $11.9 billion to $63.0 billion.
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