Merchandise Trade and the Outlook for 1988

Will this year’s improvement in U.S. foreign trade be double, triple, or even quadruple last year’s gain? Many forecasters think this will happen and are expecting that a major growth of real net exports will fuel further expansion of our economy. There are many factors, however, working against trade improvement of this magnitude, making it unlikely that the expectations of the more optimistic of these forecasters will be met.