Alghadeer TV Alghadeer TV
The merchandise trade deficit rose in the United States in March, in an indication that the Corona virus outbreak has upset the flow of goods and services in the world. It is expected that the American debt will rise to 27 trillion dollars, with the administration borrowing three trillion new in the second quarter of the year to face the repercussions of the Corona crisis.
A record decline in US exports, and a rise in the trade deficit, is what it recorded during the month of March, in light of the outbreak of the Corona epidemic. The US Department of Commerce reported that US exports fell 9.6 percent in March, recording a record monthly decline, raising the trade deficit to 44 billion and 400 million dollars. The volume of imports also decreased by 6.2 percent, as transportation and freight traffic around the world stopped, causing the trade gap to increase by 12 percent from about $ 40 billion in February.
The report showed that the decline in exports and imports in March is partly due to the repercussions of Covid-19, as many businesses operate with limited capacity or completely stop their activities, while imposing restrictions on the movement of travelers across borders. On the other hand, the ratio of American debt to GDP is among the highest in the developed countries, and the Corona virus pandemic has made matters worse, as the Trump administration announced its intention to borrow three trillion dollars in the second quarter to meet the consequences of the virus.
This figure represents more than five times what I borrowed at the height of the economic crisis in 2009, and it exceeds the total amount you borrowed last year, estimated at one trillion and 280 trillion dollars.
The trillions borrowing will contribute to the jump in total US debt from $ 24 trillion in the first week of April to more than $ 27 trillion. Economists have predicted that the US debt will reach 117 percent of GDP by 2025
