U.S. Trade Deficit Soared in 2004, Commerce Says

March 16, 2005 9:30 AM, EST

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he U.S. trade deficit soared to an all-time high of $665.9 billion in 2004, the Commerce Department reported Wednesday.

ommerce reported the nation’s current account deficit was 25.5% higher than the previous record $530.7 billion deficit, set in 2003.

It said the deficit was growing as the year ended, with a fourth-quarter shortfall hitting a record $187.9 billion, up 13.3% from the third quarter.

The Bush administration contends the soaring trade deficits reflect a U.S. economy that is growing faster than the rest of the world, pushing up imports and dampening demand for U.S. exports, the Associated Press reported.

But economists are concerned that high levels of resources being transferred outside the country could erode U.S. living standards, AP said.

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