Tags: Current | Account | economy | deficit | trade

Current Account Deficit Widens to 2.5 Percent of GDP

Image: Current Account Deficit Widens to 2.5 Percent of GDP
Yuriy Merzlyakov/Dreamstime

Tuesday, 20 Jun 2017 09:13 AM

The U.S. current account deficit widened slightly in the first quarter, as the country imported more crude oil, car parts and supplies for its factories.

The Commerce Department said on Tuesday the current account deficit, which measures the flow of goods, services and investments into and out of the country, expanded by 2.4 percent to $116.8 billion.

The current account deficit for the fourth quarter was revised up to $114.0 billion from the previously reported $112.4 billion. Economists polled by Reuters had forecast the deficit rising to $123.8 billion in the first quarter.

The first-quarter current account deficit represented 2.5 percent of gross domestic product, up from 2.4 percent in the fourth quarter.

The current account deficit has dropped from a record high of 6.3 percent of GDP in the fourth quarter of 2005 as rising domestic oil production and lower global oil prices curbed the import bill.

The deficit on goods widened by $5.3 billion to $200.3 billion in the first quarter. Imports of goods rose 3.3 percent

The surplus on primary income - which includes investment income such as dividends, and employee compensation - fell by $3.6 billion. Primary income receipts increased $3.5 billion to $216.5 billion.

The deficit on secondary income, U.S. government grants, pensions, fines and penalties, and worker remittances fell to $25.5 billion from $31.3 billion in the fourth quarter.

© 2017 Thomson/Reuters. All rights reserved.

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The U.S. deficit in the broadest measure of trade rose to the highest level in a year during the first quarter.
Current, Account, economy, deficit, trade
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2017-13-20
 

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