Why does a widening trade deficit not necessarily indicate economic weakness?
Replied byCathie Wood
Founder, CEO & CIO at ARK Invest
Niche: Finance
Revenue: Not Publicly Disclosed/month
Location: St. Petersburg, Florida, United States
Started: 2014
While imports are currently much stronger than exports, driving the deficit deeper, the other side of a trade deficit is a capital surplus. Foreign direct investment is moving back into the United States, attracted by favorable tax depreciation policies.
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