Lates News

The United States' current account deficit in the first quarter expanded to $226.8 billion, an increase of $5.8 billion, or 2.6%, compared to the revised $221.1 billion in the fourth quarter of the previous year. The ratio of the deficit to GDP increased slightly from 2.8% to 2.9%. The deficit expansion was not due to trade, as the goods trade deficit actually narrowed while goods and services exports jumped by $50 billion to $1.38 trillion. The main drag came from a shift in primary income, from a surplus in the fourth quarter to a deficit in the first quarter. This account reflects the difference between the returns on foreign assets held by U.S. residents and the returns on U.S. assets held by foreign residents. This shift reveals changes in relative returns and increasing costs for financing the progressively imbalanced balance sheet. It is worth noting that there were significant revisions made annually, with the deficit in the fourth quarter being adjusted from the preliminary -$190.7 billion to -$221.1 billion, while the net international investment position was revised by nearly $6 trillion.