PrintSeptember 17, 2005
Tade gap widens
As genrally happens with a sharp currency devaluation, the size of the trade deficit initially grows rather than shrinks. The devaluation change is a bigger percentage change than the growth in the volume of raw exports compared to imports, affected by the price change. China trade deficit is now $200 billion annualized. Unsustainable, I think, politically.
Richard Baehr 12 14 04
