Economic Growth in the Country - Essay Example

America’s net export declined in the month of December. An increase in the trade deficit may compel America to seek for assistance with foreign currency to finance her imports. 2013. Nations are concerned about the performance of other economies because when other economies are growing America will be able to export different commodities to those economies.

The growth in exports will result in a reduction in the trade deficit. When the economy grows at a negative rate citizens will import less from other countries because the price of import is higher (Sparshott, 2014). Therefore, even the neighboring countries that have stable economies will suffer because the export market will shrink. This was the situation that faced the U.S. due to the slow growth rate in other countries such as Europe, China, and South Africa. A nation should identify a sector of the economy that is performing well in terms of exports so that they can give it government support because the more exports the smaller the trade deficit and the higher the growth of the economy (Sparshott, 2014). An increase in job opportunities predicts an increase in production in the future.