U.S. balance of payments
Dollar-Supporting U.S. Balance of Payments
June 21, 2019
The seasonally adjusted U.S. current account deficit was $13.5 billion smaller in the first quarter than in the final quarter of 2018, and it narrowed 0.3 percentage points as a percent of GDP to 2.5%. That ratio, which this century crested at 6.3% in the final quarter of 2005, hasn’t averaged 3.0% or higher in […] More
U.S. Balance of Payments and the Dollar
March 21, 2018
The dollar did not perform as weakly in the fourth quarter as it did earlier in 2017. Between end-2016 and end-2017, the U.S. currency lost 12.3% against the euro, 8.7% relative to the pound, 7.6% versus the Aussie dollar, 6.5% versus the loonie, 6.3% vis-a-vis the yuan, 4.3% against the Swiss franc, and 2.0% versus […] More
An Improved U.S. Balance of Payments
December 19, 2017
The U.S. current account deficit in the third quarter of 2017 of $100.6 billion was 20% smaller than in the second quarter. The current account comprises net trade in goods (or merchandise) and services, plus net investment income and net transfer payments in and out of the country. The current account is an important measure, […] More
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
