The nation’s export performance is unlikely to improve anytime soon.
After narrowing earlier this year as the pandemic arrived on American shores, the goods deficit swelled in recent months. Aggressive U.S. crisis-fighting efforts that gave consumers $1,200 stimulus checks and enhanced unemployment benefits fueled a surge in imports, while weak demand from abroad left U.S. exports depressed.
“There doesn’t seem to be any real bright spot that’s going to drag us out of this long, hard slog,” said economist Megan Greene, a senior fellow at Harvard University’s Kennedy School of Government.
Economies in Europe, Japan, Brazil and India all will suffer deeper recessions this year than the United States. U.S. output is expected to drop by 4 percent in 2020 while Europe will experience a roughly 7 percent decline, according to S&P Global Ratings. And the outlook through the first half of next year is for more of the same,