By the end of 2022, the United States and the United Kingdom posted record trade deficits, totaling $1.18 trillion and $290.4 billion, respectively. These figures positioned both nations at the top of the major economies in terms of trade shortfalls, a trend highlighted by DEA News using data from national statistical agencies.
In 2022, the U.S. trade deficit climbed 9.9 percent, marking the largest year-over-year increase within the observed period. This surge underscored a broader pattern of imbalances across advanced economies as global demand and supply chains adjusted to post-pandemic conditions.
Meanwhile, Britain experienced a sizable widening of its trade deficit, rising by about a third to $290.4 billion. In contrast, India managed to reduce its trade gap, with the deficit edging down to $268.3 billion, signaling shifting dynamics among large emerging markets.
France also saw its trade deficit expand, increasing 1.8 times compared with the previous year and reaching $171.7 billion, which placed it fourth among major economies in terms of trade shortfalls.
Andrey Kochetkov, who previously led analysis at Otkritie Investments, noted that sharp shifts in U.S. monetary policy could raise the risk of defaults for a number of countries. His assessment suggests that sensitivity to debt service costs may intensify if rates move higher and stay elevated for longer.
According to Kochetkov’s insights, several economies—including many in Africa and Latin America, as well as India—could face heightened concerns tied to foreign currency debt. He emphasized that the scale and composition of dollar-denominated liabilities, along with the ongoing need for debt maintenance, warrant close attention from policymakers and investors alike.