Microsoft boss warns over US trade gap

MICROSOFT chief Steve Ballmer is the latest business titan to foresee trouble ahead unless America does something to reduce its massive trade deficit.

The US is tipped to go into the red to the tune of $700bn (£383bn) this year, and Ballmer warned that an unchecked deficit, combined with a slowdown in economic powerhouse China, would mean trouble for everyone.

Ballmer was speaking during a trip to Australia. He and his boss Bill Gates are both currently on charm offensives throughout the Asia Pacific.

'It is not a good thing to see the world's largest economy running a big trade deficit,' he told The Australian newspaper. 'That is a long-term problem, for everybody, not just the US.' He also said there were 'problems intrinsic in the Chinese economy'.

'There are problems waiting to happen out there. Maybe they will be averted by smart actions by government officials - I'm not making some Doomsday prediction - but there is something there that needs to be faced.'

For now, though, Ballmer said the global economy is 'in pretty good, short-term shape'.

'Business is pretty good. It's pretty good in the US, pretty good in Europe, very good in Australia,' he said.