The Weak Dollar's Impossible Strength

Once upon a time, until 1997, America's current account deficit was relatively small--just 1% of GDP. Since then, the deficit has widened dramatically, to 2.7% of GDP in 1999, 3.5% in 2001, and an estimated 4.7% this year. Expect more of the same in 2004, when the current account deficit should reach 5.1% of GDP, despite forecasts that the US economy will grow significantly faster than most of its trading partners.