American economy threatened by historic deficit

The US deficit in the broadest measure of international trade surged to an all-time high last year, increasing a potential threat to the American economy as the country sank deeper into debt to Japan, China and other nations.

The Commerce Department reported Wednesday that the deficit in the US current account increased by 25.5% last year to a record $666bn (€497bn). Forecasters said the 2005 deficit could be $100bn (€74.6bn) higher than that as the US continues to buy record levels of foreign consumer goods and oil.