U.S. current-account deficit widens to $246 billion in Q2
Official data show the U.S. external deficit widened 15.7% in a single quarter and net liabilities reached $22.42 trillion; watch whether the trend persists.
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The U.S. current-account deficit widened 15.7% in the second quarter to $246.0 billion, rising from 2.7% to 3.0% of GDP.
The Bureau of Economic Analysis released the figures on September 24. The deficit grew by $33.4 billion from the quarter before, driven mainly by a wider goods deficit; imports and income payments rose $92.2 billion, outpacing the $58.8 billion increase in exports and income receipts. The first-quarter deficit was revised up to $212.6 billion.
On the liability side, the U.S. net international investment position fell to negative $22.42 trillion, down about $1.15 trillion from negative $21.27 trillion at the end of the first quarter. The agency notes the asset and liability changes were driven mostly by price revaluation; net financial-account transactions were negative $369.7 billion, meaning the U.S. borrowed net from foreign residents during the quarter.
The next release is due December 18, when the second-quarter figures will be revised.