The United States suffered its worst monthly trade deficit on record in May, as its exports to Asia.
"The trade deficit is large because we have an integrated global economy, and our economy has been strong while the Asian economies have been in trouble," President Bill Clinton said after the government announced a 10.3 per cent jump in the May goods and services shortfall over April to $15.7 billion (£11 billion).
"Almost the entire increase in the trade deficit is due to the Asian economic trouble," President Clinton said.
As fragile Asian nations have proved unable to absorb more US exports, their weakened currencies have reduced the price of imported goods in the United States, making them more attractive to US consumers, the President said.
The value of US imports rose 0.5 per cent in May to $92 billion while exports fell 1.3 per cent to $76.2 billion. In the first five months of the year, the deficit widened to $64.9 billion from $46.5 billion a year earlier. The United States continued to run up huge deficits with Japan, $5 billion, and China, $4.6 billion, and posted substantial shortfalls with Hong Kong, South Korea, Singapore and Taiwan - $1.6 billion.
Exports to recession-hit Japan through May were down 11 per cent compared with the same period last year. Exports to Hong Kong, South Korea, Singapore and Taiwan declined by 20 per cent.
Commerce Secretary Mr William Daley acknowledged it was "a pretty good bet" the deficit had not yet peaked.
