Friday, November 13, 2009

Weak dollar wont help the economy right now

The weak US dollar isn't helping the economy anytime soon, while it is allowing our exports to increase, the amount of imports in this country is growing faster. So it's going to take a couple years.

WASHINGTON – A weaker dollar may boost the nation's economy by increasing exports and narrowing the trade gap — but that won't happen anytime soon.

Instead, the nation's trade deficit rose in September by the largest percentage in a decade as U.S. exports grew for the fifth straight month, but imports rose faster, a government report showed Friday. That trend is likely to continue until the middle of next year, economists said.

Rising oil prices and higher purchases of foreign goods by U.S. companies drove imports higher. So did more purchases of foreign parts by U.S. manufacturers, which are ramping up production in the fledgling economic recovery.

Higher exports, spurred by a lower dollar, probably won't reduce the trade gap and boost the U.S. economy until 2011, economists said.

Meanwhile the job market is still in shambles. It will be interesting to see how the US economy starts to recover if it is actually recovering.

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