The current-account deficit of the United States narrowed in the last quarter of 2021, as services and primary income recorded higher surpluses during the month.
Source: Bureau of Economic Analysis
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The current-account deficit stood at $217.9 billion, $2.0 billion or 0.9% from the revised third-quarter deficit of $219.9 billion. This is equivalent to 3.6% of the current-dollar gross domestic product (GDP), lower than 3.8% the previous quarter.
The narrower deficit comes as the deficit on secondary income declined, while the services and primary income surpluses expanded. These were mostly offset by the wider deficit on goods.
Almost all major categories of transactions posted growth in the last three months of 2021, marking the sixth straight quarter of growth after the declines recorded in the second quarter of 2020 due to the COVID-19 pandemic.
Net financial-account transactions for the quarter were -$133.6 billion, to reflect net US borrowing from foreign residents.