The US goods trade deficit shrank significantly in June 2025, which is widely reported to likely boost second-quarter GDP growth.
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US goods trade deficit shrinks in likely boost to second-quarter GDP
US goods trade deficit shrinks in likely boost to second-quarter GDP - Reuters
Source: reuters.com
At a glance
Verified July 29, 2025Key Evidence
The US goods trade deficit narrowed to its lowest level in nearly two years in June 2025 due to a sharp fall in imports, as reported by Reuters and other sources. Economists polled had expected the deficit to rise, but instead it shrank, which is likely to contribute positively to second-quarter GDP growth.
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The reporting
What the Evidence Shows
Multiple credible sources, including Reuters and other financial news outlets, report that the US goods trade deficit narrowed sharply in June 2025. This contraction was driven primarily by a steep drop in imports, which economists interpret as a positive factor for GDP growth in the second quarter. The narrowing trade deficit reduces the drag on GDP that a larger deficit would impose, thus providing a likely boost to economic growth.
Forecasts from economists and data from the US Census Bureau support this conclusion, indicating that trade contributed positively to the second-quarter GDP outlook. While some inventories may have been drawn down, the overall effect of the reduced deficit is expected to be beneficial for headline GDP figures.
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Verified Sources10
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