US current account trade deficit hits new high

THE US deficit in the broadest measure of international trade rose to an all-time high of $195.1 billion (€159.3bn) from January through March of this year as the country sank deeper into debt to Japan, China and other nations.

The US Commerce Department reported on Friday that the deficit in the current account rose by 3.6% from the previous quarterly record, an imbalance of $188.4bn in the final three months of 2004.

The current account deficit has risen to record heights in recent years as America’s demand for foreign goods and services has soared, raising worries about the country’s ability to continue financing its trade deficit.