Q1 CURRENT ACCOUNT: $176.4bln DEFICIT
The US’ current account deficit – the balance of trade in goods, services, income, and net transfers – rose to $176.4bln in Q1 from a downwardly revised $167.2bln deficit in Q4 (previously reported as $172.9bln).
The current account deficit was higher than the $172.5bln expected and mainly the result of a decrease in the surplus on income, according to the BEA. Additionally, the goods deficit and net unilateral current transfers to foreigners both increased enough to offset a rise in the surplus on services.
The current account deficit represented 5% of GDP in Q1, up from a 4.8% share in Q4, according to the Commerce Dept.