WASHINGTON –The U.S. Department of the Treasury today released the Semi-Annual Report to Congress on International Economic and Exchange Rate Policies, as required under Sections 3004 and 3005 of the Omnibus Trade and Competitiveness Act of 1988.  The report covers the period from January 2009 through June 2009, but where available and appropriate, information through early October 2009 is included.  The report, along with past reports, can be found at http://www.treasury.gov/offices/international-affairs/economic-exchange-rates/.

The report describes U.S. economic developments as well as international economic, financial, and exchange rate developments during the first half of 2009.  In particular, it focuses on the policy actions that major U.S. trading partners – representing more than 80 percent of U.S. international trade – have taken to lay the foundation for economic recovery.

During the period under consideration, virtually every country and economic area described in the report put in place additional monetary and fiscal measures to bolster demand.  These forceful actions worked, and the report shows that financial conditions in the United States and around the world have improved dramatically and signs of an economic recovery have begun to emerge. Global current account imbalances have fallen sharply during the crisis from a peak of 5.9 percent of world GDP to an IMF-estimated 3.6 percent in 2009. The U.S. current account deficit has fallen from a peak of 6.5 percent of GDP in the fourth quarter of 2005 to 2.9 percent of GDP in the second quarter of 2009. 

As noted in the report, Treasury has concluded that no major trading partner of the United States met the standards identified in Section 3004 of the Act during the most recent reporting period. 
 
###