EXPORTS, IMPORTS, and TRADE BALANCE

KEY ECONOMIC EVENTS

• Although the economic performance of the United States and most of its major trading partners moderated in 2005, the growth of the U.S. economy again exceeded that of most of its partners despite the impact of Hurricanes Katrina and Rita. As a result, the increase in U.S. demand for foreign goods exceeded the increase in foreign demand for U.S. products.
  
  
• In 2005, U.S. exports in each merchandise sector increased, for an overall rise of $76.8 billion (11 percent) to $804.0 billion. Aircraft, spacecraft, and related equipment; petroleum products; and motor vehicles accounted for a combined $18.3 billion (24 percent) of net export growth.
  
  
• In 2005, U.S. imports for all merchandise sectors recorded an overall increase of $202.2 billion (14 percent) to $1.7 trillion. Numerous industry groups recorded import growth in excess of $4.0 billion, but the energy sector - crude petroleum, petroleum products, and natural gas and components - accounted for $75.1 billion (37 percent) of the net import increase.
  
  
• The U.S. merchandise trade deficit expanded 17 percent, from $733.0 billion in 2004 to $858.4 billion in 2005.

SECTOR SHIFTS

| Agricultural Products | Forest Products | Chemicals and Related Products |
| Energy and Related Products | Textiles, Apparel, and Footwear |
| Minerals and Metals | Machinery | Transportation Equipment |
| Electronic Products | Miscellaneous Manufactures |

COUNTRY SHIFTS