The recent London meeting of finance ministers from the Group of Seven leading industrial countries focused attention on the size and implications of the huge US current account deficit, which reached a record $618bn in 2004, according to figures released this month. In a report on the global economy, the United Nations recently joined the chorus of concerns, noting along the way that the vigorous US economy was one of the main drivers behind the record trade deficit.

Strong growth in the US has stoked demand for imports of not just consumer goods but also the capital machinery, components and raw materials needed by an expanding business sector. Meanwhile, sluggish growth in western Europe and Japan has damped demand for US exports.