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U.S. goods trade deficit widens in October
From:Xinhua  |  2017-11-29 03:52

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WASHINGTON, Nov. 28 (Xinhua) -- U.S. goods trade deficit widenedin October, which could drag economic growth in the fourth quarterof the year, the Commerce Department said on Tuesday.

The trade deficit in goods was 68.3 billion U.S. dollars inOctober, up 4.2 billion dollars, or 6.5 percent, from the previousmonth, the Commerce Department said. That was higher thaneconomists' expectations for a deficit of 64.9 billion dollars lastmonth.

Exports of goods for October fell by 1.3 billion dollars to129.1 billion dollars, while imports of goods edged up by 2.9billion dollars to 197.4 billion dollars last month, according tothe department.

A widening trade deficit means that net trade is expected toconsiderably drag U.S. economic growth in the fourth quarter thisyear unless it could be reversed in the final two months of theyear, analysts said.

The U.S. economy grew at an annual rate of 3 percent in thethird quarter of the year, slightly lower than the 3.1 percentgrowth rate in the previous quarter, according to the CommerceDepartment.

While the Trump administration has vowed to reduce U.S. tradedeficit with the rest of the world, economists have argued that theadministration's tax cut plan would actually increase the tradedeficit.

"There may not be much that macroeconomists can predict withaccuracy, but a large tax cut will lead to a budget deficit, whichwill lead to a trade deficit," said Jeffrey Frankel, a professor ofeconomics at Harvard University. Enditem

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