Trade Data: US Exports Growing Faster Than Imports

I wrote in a previous post about the phenomenal growth in exports to India. Here's some additional data on U.S. exports:

"U.S. export growth was phenomenal in 2006, increasing by 14.5% (as compared to 10.8 percent for imports). Exports to Europe increased by 15.2 percent and to China by nearly 32 percent. The growth in exports to Japan was a slower 7.5 percent, but it grew. Since 2001 U.S. exports have increased by more than 42 percent, and that growth reflects, more than any discernible trade policy measure, the fact that the world economy has been growing handsomely during that period. As foreign demand rises, foreigners are demanding more American-made products.

What's so desirable about balanced trade or a trade surplus? Japan has run a large trade surplus since time immemorial. Yet, its economy was moribund for 13 years, growing at barely over 1% per year between 1991 and 2004.

Likewise, Germany has run a large trade surplus for many years, but until less than one year ago, it remained afflicted with a double-digit unemployment rate. (Today it is just under 10% percent). Which is better: a trade surplus or real economic growth and opportunity?"

From Cato's Daniel J. Ikenson