The US trade gap plunged to its lowest level in 10 years in May as exports jumped up, while weak and shaky American economy dragged imports down.

The deficit gap was recorded at the lowest level since November 1999 at $26 billion in May, down 9.8 percent.

Exports soared to $123.3 billion, up 1.6 percent, the biggest increase since July 2008.

Exports of chemicals, petroleum products and industrial machinery recorded an increase. Boeing Co., the world's second biggest commercial-plane manufacturer, bagged 20 orders in May, up from 17 in April.

Imports plunged 0.6 percent to $149.3 billion. Imports in May were 34.9 percent below the all-time high in last July.

Decline in imports of crude oil and auto parts played a vital role in bring down the deficit gap. U. S. demand for imported auto parts plunged in May as many auto companies like General Motors Corp. and Chrysler LLC slashed their production.

Petroleum imports dropped to $17.4 billion in May, down 3.4 percent.

A contraction in the export-import gap signifies that trade will contribute more to U. S. gross domestic product.

A senior economist at UBS Securities LLC in Stamford, James O'Sullivan, said, "Trade looks like it's going to be a big plus for second quarter GDP."

After the report of shrinkage in deficit gap, the dollar lingered lower against the yen, at 92.24 yen per dollar in New York.

On the other hand, IMF is foreseeing the world economy to shrink 1.4 percent this year, before recovering next year with a 2.5 percent expansion.