The Global Economy Is Threatened Again by Trade Imbalances

Deficits and surpluses will be on the agenda at next week’s G-7 meeting in the French Alps.

When President Trump meets his counterparts at next week’s G-7 summit in France, one of his favorite topics will be on the agenda: the massive U.S. trade deficit.

The French hosts want to talk about global imbalances, meaning the U.S.’ current-account deficit and the corresponding surpluses of China and, to a lesser degree, the European Union and Japan.

IMF calculates that deficits plus surpluses reached 3.7%  last year after falling steadily from around the global financial crisis.

Until the early 2000s, they fluctuated between 1% and 3%. While annual deficits are narrower than 15 years ago, they are more persistent and more entrenched in national behavior.

Take the U.S., whose current-account deficit of $1.1 trillion is by far the largest single imbalance.

This is worrisome. 

Greg Ip  Wall Street Journal June 11, 2026

https://www.wsj.com/economy/global/the-global-economy-is-threatened-again-by-trade-imbalances-b996bc00

U.S. Trade Deficit $55.9 billion. That's the size of America's trade deficit in April.

672 miljarder dollar på årsbasis x 9,45. 8.064 miljarder kronor.

We got a problem.

https://englundmacro.blogspot.com/2026/06/9-juni-us-trade-deficit-spacex.html


Martin Wolf Globala obalanser 

De ligger i skärningspunkten mellan nästan allt som är viktigt inom global ekonomi och politik: nationell makt, full sysselsättning, industriell styrka, finansiell stabilitet, finans- och penningpolitik och hantering av växelkurser.

1920- och 1930-talen var en lärdom i hur allt kan gå spektakulärt fel.

https://englundmacro.blogspot.com/2026/05/martin-wolf-globala-obalanser-target.html

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