20 November 2001

U.S. Trade Deficit Driven Down by September Terrorist Attacks

Washington -- The U.S. trade deficit plunged by a record amount in September reflecting huge payments of U.S. claims by foreign insurance companies and a weakening global economy wrought by the September 11 terrorist attacks on the World Trade Center and Pentagon, the U.S. Department of Commerce reports.

The department's November 20 press release said that U.S. imports of services dropped to $4,514 million in September from $18,013 million in August, reflecting not only the $11,000 million surge in insurance payments but also a sharp drop in travel spending.

Overall the deficit dropped to $18,692 million in September, the lowest level since March 1999, from $27,108 million in August. The deficit comprised a $35,917 million deficit in goods and a $17,225 million surplus in services.

The trade deficit reached a peak in September 2000 and has trended down since, reflecting the slowdown in the global economy. The Organization for Economic Cooperation and Development (OECD) issued November 20 a revised economic forecast projecting an average growth in gross domestic product for its 30 members of 1 percent in 2001, down from the 2.8 percent forecast in May.

The terrorist attacks "inflicted a severe shock to the world economy" that was already weak, the Paris-based OECD said.

U.S. exports in September, $77,293 million, and imports, $95,985 million, were both down to their lowest levels since March 1999.

Big drops in exports were reported in autos plus a wide range of capital goods, including telecommunications equipment, computer accessories, generators, industrial engines, aircraft and semiconductors.

Similarly, big import drops were reported in autos and capital goods plus natural gas, crude oil and gem diamonds.

The September deficit with China went up to $8,503 million; that with Japan was little changed at $5,359 million. Other large deficits were reported with Canada, $4,251 million; Mexico, $2,974 million; Germany, $1,900 million, and Taiwan, $1,186 million.

Following are some key figures:

U.S. Goods And Services Exports, Imports And Trade Balance

Millions of dollars, on a balance of payments basis, seasonally adjusted

Trade

balance Exports Imports

Jan.-Dec. 1999 -261,838 957,353 1,219,191

Jan.-Dec. 2000 -375,739 1,065,702 1,441,441

Jan.-Sept 2000 -275,446 795,575 1,071,021

Jan.-Sept 2001 -258,788 775,025 1,033,812

September 2000 -34,506 91,160 125,666

September 2001 -18,692 77,293 95,985

U.S. GOODS EXPORTS, IMPORTS AND TRADE BALANCE

Millions of dollars, on a balance of payments basis, seasonally adjusted

Trade

balance Exports Imports

Jan.-Dec. 1999 -345,434 684,553 1,029,987

Jan.-Dec. 2000 -452,207 772,210 1,224,417

Jan.-Sept 2000 -333,687 575,973 909,660

Jan.-Sept 2001 -326,008 554,581 880,588

September2000 -39,682 66,773 106,455

September2001 -35,917 55,554 91,471

U.S. SERVICES EXPORTS, IMPORTS AND TRADE BALANCE

Millions of dollars, on a balance of payments basis, seasonally adjusted

Trade

balance Exports Imports

Jan.-Dec. 1999 83,596 272,800 189,204

Jan.-Dec. 2000 76,468 293,492 217,024

Jan.-Sept 2000 58,241 219,602 161,361

Jan.-Sept 2001 67,220 220,444 153,224

September 2000 5,176 24,387 19,211

September 2001 17,225 21,739 4,514

U.S. GOODS EXPORTS, IMPORTS AND TRADE BALANCE, BY COUNTRY

Millions of dollars, on a Census basis, not seasonally adjusted

Bilateral September September

balance exports imports

Total -34,708 55,292 90,000

North America -7,225 20,148 27,374

Canada -4,251 12,426 16,377

Mexico -2,974 7,722 10,696

Western Europe -3,804 12,841 16,645

Euro Area -3,058 8,502 11,560

European Union -3,218 12,088 15,306

Austria -84 196 279

Belgium 336 1,037 701

Finland -63 149 213

France -279 1,611 1,890

Germany -1,900 2,278 4,178

Italy -716 726 1,442

Netherlands 706 1,399 693

Spain 136 488 352

Sweden -402 259 661

United Kingdom 439 3,162 2,724

Other EU -1,390 783 2,173

European Free Trade

Association -539 507 1,046

Norway -274 98 371

Switzerland 238 399 637

Other EFTA -27 10 38

Other Western Eur. -47 246 293

Eastern Europe, Former

Soviet Reps. -714 501 1,216

Hungary -295 53 348

Poland -8 58 66

Former Sov. Reps. -340 297 638

Russia -245 196 441

Other FSR -96 101 197

Other Eastern Europe -71 93 164

Pacific Rim -16,996 14,358 31,354

Australia 278 895 617

China -8,503 1,445 9,948

Japan -5,359 4,318 9,677

Newly Industrialized

Countries -1,205 6,137 7,342

Hong Kong 304 1,219 915

South Korea -776 2,008 2,784

Singapore 453 1,534 1,081

Taiwan -1,186 1,377 2,562

Other Pacific Rim -2,207 1,563 3,770

South/Cent. America -1,045 4,306 5,351

Argentina -16 272 288

Brazil -48 1,248 1,296

Colombia -261 242 502

Other S/C America -720 2,544 3,265

OPEC -3,295 1,533 4,828

Indonesia -594 177 771

Nigeria -740 68 808

Saudi Arabia -616 507 1,123

Venezuela -584 416 1,000

Other OPEC -760 365 1,125

Other countries -2,834 2,170 5,004

Egypt 168 225 57

South Africa -85 245 327

Other -2,918 1,703 4,621

NOTE: Data on a Census basis reflect movement of goods into and out of the United States through U.S. Customs Service stations. Balance-of-payments basis data adjust Census data to include products that bypass Customs, such as exports of military aircraft and imports of electricity from Canada.