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=”https://w.graphiq.com/w/81xJ3FlviyF” link=”http://country-facts.findthedata.com/l/1/United-States” link_text=”Largest Trade Deficits Incurred by United States | FindTheData” ]