World Economic Outlook Improves While U.S. Trade Deficit Soars

Jan. 13, 2005
The Bundesbank said May 20 that the world economic growth outlook has brightened in recent months, and the risk of a global recession has taken a back seat to other concerns. World economic growth will slow somewhat this year to around 2.25%, but will ...

The Bundesbank said May 20 that the world economic growth outlook has brightened in recent months, and the risk of a global recession has taken a back seat to other concerns. World economic growth will slow somewhat this year to around 2.25%, but will accelerate to 3.5% in 2000, the German central bank said in its May monthly report. Caution was included in the message, though: "The burgeoning growth optimism must not obscure the fact that it is still too early to sound the 'all clear.' The potential for a set-back is still considerable," the report said. Countries hit earlier by financial crises should continue to overhaul and modernize their economies, and European countries should continue to apply structural reforms as well, it continued. Concerning Europe, the bank said that although the euro zone's exports in the first months of the year were burdened by the long-term consequences of world economic crises, there were signs the export slowdown has bottomed. A slight recovery in the near future is possible, the Bundesbank said. Meanwhile, the indefatigable U.S. economy saw its trade deficit climb to a record high for the third consecutive month in March as rising oil prices and strong demand for foreign cars pushed imports to a record. The Commerce Department said that the U.S. goods and services trade gap widened to $19.7 billion in March from a revised $19.1 billion in February. The March deficit was well above the $18.4 billion shortfall that economists were expecting. For the first quarter of 1999, the U.S. trade deficit totaled $55.7 billion, a 57% increase compared with a year ago. Economists say that the buoyant U.S. economy continues to pull in imports at a record pace while demand for U.S. goods and services in many parts of the world remains sluggish.

Popular Sponsored Recommendations

Empowering the Modern Workforce: The Power of Connected Worker Technologies

March 1, 2024
Explore real-world strategies to boost worker safety, collaboration, training, and productivity in manufacturing. Emphasizing Industry 4.0, we'll discuss digitalization and automation...

3 Best Practices to Create a Product-Centric Competitive Advantage with PRO.FILE PLM

Jan. 25, 2024
Gain insight on best practices and strategies you need to accelerate engineering change management and reduce time to market. Register now for your opportunity to accelerate your...

Transformative Capabilities for XaaS Models in Manufacturing

Feb. 14, 2024
The manufacturing sector is undergoing a pivotal shift toward "servitization," or enhancing product offerings with services and embracing a subscription model. This transition...

Shifting Your Business from Products to Service-Based Business Models: Generating Predictable Revenues

Oct. 27, 2023
Executive summary on a recent IndustryWeek-hosted webinar sponsored by SAP

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!