Page "Balance of trade" Paragraph 43

As of October 2007, the U. S. dollar weakened against the euro, British pound, and many other currencies.

For instance, the euro hit $ 1. 42 in October 2007, the strongest it has been since its birth in 1999.

Against this backdrop, American exporters are finding quite favorable overseas markets for their products and U. S. consumers are responding to their general housing slowdown by slowing their spending.

Furthermore, China, the Middle East, central Europe and Africa are absorbing more of the world's imports which in the end may result in a world economy that is more evenly balanced.

All of this could well add up to a major readjustment of the U. S. trade deficit, which as a percentage of GDP, began in 1991.