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Strategies & Market Trends : Currencies and the Global Capital Markets -- Ignore unavailable to you. Want to Upgrade?

To: N who wrote (688)	9/23/1998 3:13:00 PM
From: N	Respond to of 3536

...a soothing word from an assistant Treasury wonk treas.gov with insightful commentary like The effect on the U.S. has evolved slowly, and although it is too early to know for sure how serious the impact of the Asian financial crisis will be on the U.S. economy, it is clear that it is having some effect, particularly on our balance of trade. The continued strength of the U.S. economy relative to the rest of the world most notably East Asia has led to significant changes in international trade flows and a significant increase in the U.S. current account deficit. Thus far, the shift in the balance of trade has mainly been a story about exports. Indeed, total U.S. exports actually declined 2.8 percent at an annual rate in the first quarter of this year, and 7.4 percent at an annual rate in the second a sharp contrast to the 10 percent average annual growth in real exports over the preceding four years. Perhaps the most obvious consequence of this reduced demand for exports has been a noticeable weakening in manufacturing activity since the beginning of the year. Meanwhile, real imports into the United States have not accelerated thus far, rising at a slightly slower pace in the first half than they did in 1997. And going forward, if the turmoil continues to spread, we run the risk of additional impact on the economy. Nancy CGM692...TreasPR2 692.html.