Narrowing the U.S. current account deficit: a sectoral assessment

Abstract

Based on disaggregated trade data and company surveys, this study presents a detailed examination of the trade outlook in the largest manufacturing product groups. It estimates how much each of these industries can contribute to improvements in the US trade deficit, and whether substantial reduction in the deficit can be expected on the basis of present policies. The analysis incorporates industry perspectives on the improvement of exchange rate movements and other factors that inhibit export growth or enhance import substitution. Industry-specific policy proposals are suggested.