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Trade Publication Article
Europe: Continued U.S. Export Growth Helps Balance Trade with Western Europe
1990
Overview
While the US trade balance should continue to improve in the coming months. this improvement could be slowed by the net appreciation of the dollar over the last 2 years against most major currencies. The more than 25% rise of the dollar against the Japanese yen over the last 15 months is of particular concern. US exports are expected to rise more rapidly than imports in 1990, mainly because foreign economies are projected to grow faster than the US economy. Foreign demand for US exports, particularly for manufactured and other nonagricultural goods, should rise more quickly than the domestic demand for foreign goods. Agricultural exports will not be a major contributor to US export growth in 1990. Imports of agricultural products are predicted to remain at the record levels reached in 1989. Domestic demand for petroleum products should be at about the same level as in the previous 2 years, but import volume is expected to increase further because of the continued decline of US oil production.
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