The U.S. trade deficit shrank like a puddle in the hot sun in 2008 and 2009 as appetite for imports melted in the recession and Asian export markets grew. With the economy now improving, the gap is widening again, dashing hopes that the United States is anywhere close to rebalancing trade with the rest of the world.

The quick resurgence shows that the recession didn’t reduce U.S. overdependence on imports; by permanently closing many factories, it probably helped hollow out the economy, making it harder to balance trade.

From Bloomberg, May 10, 2010