U.S. current account

Financing the Second-Quarter U.S. Current Account Deficit – Part I

September 18, 2012

The current account deficit contracted 12% and to 3.0% of GDP from 3.5% of GDP in the first quarter.  Five-sixths of the deficit was covered by official capital inflows.  Direct and portfolio investment inflows, long-term capital inflows that represent the topmost quality of dollar support in fact generated a net outflow for a third straight […] More

Spain Gets More Bad News

June 14, 2012

The dollar has declined 0.8% against the kiwi, 0.5% versus the loonie, 0.4% relative to the Australian dollar, and 0.2% relative to the euro, Swissie, and sterling.  The yuan is steady. Share prices dropped 1.2% in Hong Kong and India, 1.8% in Indonesia, 1.7% in the Philippines, 0.8% in China, 0.5% in Australia and Singapore, […] More

How the U.S. Current Account Was Funded in the Third Quarter

December 15, 2011

The U.S. balance of payments strengthened in 3Q.  This improvement was not associated with a stronger average dollar than in 2Q, but it foreshadowed the appreciating trend being seen lately.  The current account deficit narrowed 11.6% last quarter and to 2.9% of GDP from 3.3% in the second quarter.  Private capital inflows, including the statistical […] More

Some Bounceback Wednesday but Investors Remain on Edge

March 16, 2011

The Nikkei recovered 5.7% after slumping some 20% in the wake of Friday’s earthquake.  Stocks also climbed 1.8% in South Korea, 1.1% in India, 1.4% in China, 0.9% in Singapore and 0.7% in Australia.  However, the German Dax and Hong Kong market edged just 0.1% higher, and stocks in France and Britain have lost a […] More

How the U.S. Current Account Was Funded in the Third Quarter of 2010

December 16, 2010

The U.S. current account deficit widened slightly more than expected last quarter to $127.2 billion, or 3.5% of GDP.  That shortfall was over-funded by a $141.1 billion officials capital inflow, which was about $100 billion greater than net official capital inflows in the second quarter.  Moreover, high-quality long-term capital inflows climbed steeply to $116.7 billion […] More

U.S. Balance of Payments Dissected

September 16, 2010

Today, the Commerce Department released its second-quarter report on U.S. international transactions, the most comprehensive compilation of the balance of payments, and the Treasury Department published its more timely July monthly figures on international capital flows.  Both releases contain a slew of items at varying levels of aggregation.  Here are some highlights. The current account […] More