The U.S. trade deficit in December jumped to the highest level in more than two years as American exports fell and imports climbed to a record level. The deficit jumped 17.1 percent to $46.6 billion in December, the biggest imbalance since November 2012, the Commerce Department reported Thursday. The widening trade gap reflected a drop in exports, which fell 0.8 percent to $194.9 billion. Imports soared 2.2 percent to $241.4 billion. The deficit for all of 2014 increased to $505 billion, up 6 percent from the 2013 deficit of $476.4 billion. Economists expect the deficit to widen further in 2015 as strong growth in the United States boosts imports, while weak growth overseas and a rising dollar continue to depress exports.
The politically sensitive deficit with China set a record for 2014, rising 23.9 percent to $342.6 billion. The United States deficit with China surpassed the deficit with Japan in 2000 and since then, the trade gap with the world's No. 2 economy has set a new record nearly every year. The $505 billion deficit for the year was the largest imbalance since a $537.6 billion deficit in 2012. The overall economy grew at a moderate 2.6 percent rate in the final three months of 2014 after turning in a sizzling 5 percent growth rate in the July-September period.
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