Research >> Economics
4Q2018 Current Account Deficit Increased
The U.S. current-account deficit increased to $134.4 billion (preliminary) in the fourth quarter of 2018 from $126.6 billion (revised) in the third quarter of 2018, according to statistics released by the Bureau of Economic Analysis (BEA). The deficit was 2.6 percent of current-dollar gross domestic product (GDP) in the fourth quarter, up from 2.5 percent in the third quarter. The previously published current-account deficit for the third quarter was $124.8 billion.
Exports of goods and services and income receipts increased $4.1 billion in the fourth quarter to $934.3 billion.
- Primary income receipts increased $5.6 billion to $271.9 billion, primarily reflecting increases in portfolio investment income and in other investment income. A decrease in direct investment income partly offset the increases. For more information on direct investment income, see the box "Effects of the 2017 Tax Cuts and Jobs Act on Components of the International Transactions Accounts."
- Services exports increased $2.1 billion to $209.3 billion, mostly reflecting increases in other business services, primarily professional and management services, in travel (for all purposes including education), primarily personal travel, and in financial services.
- Goods exports decreased $3.7 billion to $416.1 billion, mainly reflecting a decrease in foods, feeds, and beverages, mostly soybeans.
Imports of goods and services and income payments increased $11.8 billion in the fourth quarter to $1.1 trillion.
- Primary income payments increased $5.5 billion to $211.5 billion, mainly reflecting increases in other investment income and in portfolio investment income.
- Services imports increased $3.4 billion to $143.2 billion, mostly reflecting increases in travel (for all purposes including education), primarily personal travel, and in transport, primarily sea freight transport and air passenger transport.
- Secondary income payments increased $3.0 billion to $64.8 billion, mostly reflecting an increase in U.S. government grants.
Posted: March 27, 2019 Wednesday 10:00 AM