U.S. balance of payments

Comment on U.S. Current Account Data

March 21, 2017

U.S. President Trump has cast great attention on the U.S. trade and current account deficits, calling such a drag on the growth of U.S. real GDP and jobs and insinuating that the deficit expanded and the jobs and GDP situations deteriorated under his predecessor’s stewardship. The facts indicate otherwise¬†otherwise. The current account deficit averaged 2.5% […] More

Shouldn’t the Dollar Be Appreciating More Sharply?

March 14, 2013

As post-financial crisis dust continues to settle, a number of U.S. currency value determinants are better than before, if not absolutely, then in relative terms. Start with the current account.  Before the crisis, such widened progressively from 1.5% of GDP in 1993-96 to 2.9% of GDP in 1997-2000, 4.6% of GDP in 20013-04 and and […] More

How the U.S. Current Account Deficit was Funded Last Quarter

December 18, 2012

The U.S. current account deficit dropped $10.6 billion in the third quarter.  Although the decline was a bit less than analyst forecasts, it represented a 0.3 percentage point (ppt) reduction from the second quarter and a drop of 0.8 ppts from the first quarter of 2012.  All financing for the current account gap in 3Q […] More

U.S. Balance of Payments Weakened Prior to Midyear

August 15, 2011

Treasury capital flow data released earlier paint a weaker U.S. balance of payments.  Foreigners sold $11.5 billion of U.S. long-term securities in June after buying $44.6 billion in May.  Net purchases of U.S. securities averaged $26.0 billion per month in the second quarter, down from $53.9 billion per month in 1Q, and the first-half pace […] More

How the U.S. Current Account Deficit Was Funded in 4Q10 and 2010

March 16, 2011

The table below compares funding of the U.S. current account deficit in 4Q10 to the three prior quarters and its funding in calendar 2010 to 2009.  The deficit narrowed to 2.9% of GDP in 4Q from 3.4% in the two prior quarters but widened to 3.2% in 2010 from 2.9% in 2009.  The 2008 current […] More

How the U.S. Current Account Deficit was Funded Last Quarter and in 2009

March 18, 2010

The table below compares funding of the U.S. current account deficit in 4Q09 to the three prior quarters and its funding in calendar 2009 to 2008.  The deficit widened to 3.2% of GDP in 4Q from roughly 2.9% in the first three quarters of 2009 and the year as a whole.  The 2008 current account […] More

How the Third-Quarter U.S. Current Account Deficit Was Funded

December 16, 2009

The $108.0 billion current account deficit in 3Q09 equaled 3.0% of GDP, similar to the ratios of 2.8% in 2Q09 and 2.9% in the first quarter but well below a deficit equal to 5.1% of GDP a year earlier.  The value of the deficit was $10.1 billion or 10.3% wider than in the second quarter.  […] More

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