The Q2 GDP forecast was just released a few hours ago. The forecast plunged -25% from 2.4% to 1.8%.


What caused the fall in the GDP forecast? The international trade deficit. June had a trade deficit of $63.3 billion. The consensus range was between $-60.2 billion and $-62.7 billion. Remember, a trade deficit subtracts from the I component of the GDP formula. I explain how the trade deficit negatively impacts GDP here

The trading partner the U.S. has the largest deficit with is China. No big surprise.

[graphiq id=”81xJ3FlviyF” title=”Largest Trade Deficits Incurred by United States” width=”440″ height=”533″ url=”” link=”” link_text=”Largest Trade Deficits Incurred by United States | FindTheData” ]



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