US current account deficit narrows in fourth quarter
Reuters
Published Mar 21, 2024 09:18AM ET
WASHINGTON (Reuters) - The U.S. current account deficit narrowed in the fourth quarter to the lowest level in nearly three years amid an increase in secondary income, government data showed on Thursday.
The Commerce Department's Bureau of Economic Analysis said that the current account deficit, which measures the flow of goods, services and investments into and out of the country, contracted $1.6 billion, or 0.8%, to $194.8 billion last quarter. That was the lowest level since the first quarter of 2021. Economists polled by Reuters had forecast the current account deficit at $209.0 billion.
The current account gap represented 2.8% of gross domestic product, little changed from the third quarter. The deficit peaked at 6.3% of GDP in the fourth quarter of 2005.
The United States is now a net exporter of crude oil and fuel. Though the deficit remains large, it has no impact on the dollar given its status as the reserve currency.
The current account deficit shrank $152.8 billion, or 15.7%, to $818.8 billion in 2023. It was 3.0% of GDP, down from 3.8% in 2022. The drop mostly reflected a smaller goods deficit.
In the fourth quarter, secondary income increased $5.0 billion to $49.6 billion, boosted by general government transfers, mostly fines and penalties. That offset a widening in the goods trade deficit. Exports of goods decreased $1.4 billion to $514.4 billion. Imports of goods increased $4.4 billion to $779.4 billion.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.