RJ and Makay

Soaring oil prices outstripped a record level of exports, widening the March U. S. trade deficit more than economists had expected.  The deficit in international trade of goods and services rose 6% to $48.18 billion from a downwardly revised $45.44 billion in February, the Commerce Department said Wednesday.

U. S exports grew 4.6% to a record high of $172.67 billion from $165 billion the previous month. Imports rose 4.9% to $220.85 billion from $201.44 billion in February.  Strong overseas demand for autos, chemicals and industrial machinery drove exports.  Record sales to emerging South American economies and the highest European Union purchases in three years boosted export numbers.

According to the World Economic Forum, the U.S. has slipped to fourth place in the annual rankings of the world’s most-competitive economies amid a record budget deficit, while Switzerland moves to the top and is credited for its innovation and business culture.

The WEF study of 139 nations showed a number of escalating weaknesses lowered the U.S. ranking, with a lack of macroeconomic stability continuing to be the United States’ greatest area of weakness and a budget shortfall of more than $1 trillion and public distrust of politicians additional weaknesses in the world’s largest economy.