The eyes of the whole world are currently focused on the situation in Western Asia. But amidst this geopolitical crisis and war, the American economy has taken a huge leap in profits. In the month of April, America’s total exports have reached a new peak, breaking all records so far. The biggest forces behind this bumper earning are crude oil and heavy machinery. The skyrocketing prices of crude oil in the international market have filled America’s treasury, due to which its trade deficit has also reduced to a great extent.
Big decline in trade deficit
According to the latest data from the US Commerce Department, America’s total exports have jumped 2.6 percent in the month of April to reach an all-time high of $327.1 billion. Due to this spectacular increase in exports, America’s trade deficit has shrunk by 1.2 percent to $55.9 billion. Decrease in trade deficit means that less money is going out of the country and more is being earned. Interestingly, there is improvement in the March figures also. Earlier the trade deficit for March was reported at $60.3 billion, which has now been revised to $56.6 billion. Apart from this, a tremendous growth of 4.1 percent was recorded in the export of goods only, due to which this figure has crossed 221.3 billion dollars.
Bumper earnings from crude oil
The biggest factor behind America’s record breaking earnings is petroleum products. The war in West Asia, which started in late February, has affected the entire supply chain of crude oil in the international market. Due to this crisis, crude oil prices crossed $100 per barrel. America is among the few countries in the world which is a net exporter of oil, that is, it produces and exports more oil than it needs. Taking direct advantage of this, America exported petroleum worth $36.7 billion in April. This figure is much higher than March’s $27.6 billion. The special thing is that this profit has not only come due to high oil prices, but America has also increased the supply of oil in huge quantities.
American economy will get a direct boost
The tremendous global demand for petroleum products and crude oil has also provided great support to other industrial products of America. Exports of industrial supplies and materials also jumped to a new record level of $89.0 billion. America’s petroleum trade surplus has reached $17.7 billion, breaking all previous records, which was only $9.4 billion in March. Economists believe that if this strong export situation continues for some time to come, America’s economic growth rate will get a big boost in the second quarter of the year.
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