Trade deficit sets record for fifth consecutive year

Thursday, February 15, 2007 6:37 PM CST

WASHINGTON (AP) — The U.S. trade deficit set a record for the fifth straight year in 2006, reflecting a huge jump in America’s foreign oil bill and a record imbalance with China. The year ended with the December deficit increasing more than had been expected.

The Commerce Department reported Tuesday that the gap between what America sells abroad and what it imports rose to a record $763.6 billion last year, a 6.5 percent increase from the previous record of $716.7 billion set in 2005. For December, the deficit rose a bigger-than-expected 5.3 percent to $61.2 billion.

The Bush administration attributed the string of deficits to the United States outpacing other countries in terms of economic growth. Officials said that President Bush would continue to pursue a strategy of opening foreign markets to U.S. goods rather than erecting protectionist barriers to keep out imports.

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