Current-Account Deficit Widened by 10.7 Percent
Current-Account Balance (chart 1)
The U.S. current-account deficit, which reflects the combined balances on trade in goods and services and income flows between U.S. residents and residents of other countries, widened by $25.8 billion, or 10.7 percent, to $266.8 billion in the second quarter of 2024, according to statistics released today by the U.S. Bureau of Economic Analysis. The revised first-quarter deficit was $241.0 billion.
The second-quarter deficit was 3.7 percent of current-dollar gross domestic product, up from 3.4 percent in the first quarter.
The $25.8 billion widening of the current-account deficit in the second quarter mostly reflected an expanded deficit on goods.
Current-Account Transactions (tables 1–5 and chart 2)
Exports of goods and services to, and income received from, foreign residents increased $4.9 billion to $1.20 trillion in the second quarter. Imports of goods and services from, and income paid to, foreign residents increased $30.7 billion to $1.47 trillion.1
Trade in goods (table 2)
Exports of goods decreased $0.1 billion to $516.7 billion, reflecting offsetting changes in several categories. The largest decrease was in nonmonetary gold. The largest increase was in capital goods, mainly computers. Imports of goods increased $20.1 billion to $813.9 billion, reflecting increases in capital goods, mostly computer accessories, peripherals, and parts; computers; and semiconductors, and in consumer goods, mainly medicinal, dental, and pharmaceutical products.
Trade in services (table 3)
Exports of services increased $3.1 billion to $271.7 billion, reflecting an increase in “other business services,” mainly professional and management consulting services and research and development services, that was partly offset by a decrease in telecommunications, computer, and information services, mostly computer services. Imports of services increased $2.9 billion to $197.7 billion, reflecting increases in charges for the use of intellectual property, mainly licenses for the use of outcomes of research and development; in insurance services, mostly reinsurance; and in transport, mostly air passenger transport.
Primary income (table 4)
Receipts of primary income increased $2.7 billion to $362.4 billion, and payments of primary income increased $8.3 billion to $361.3 billion. The increases in both receipts and payments primarily reflected increases in portfolio investment income, mostly equity securities.
Secondary income (table 5)
Receipts of secondary income decreased $0.9 billion to $49.3 billion, reflecting a decrease in general government transfers, mostly fines and penalties. Payments of secondary income decreased $0.6 billion to $93.9 billion, reflecting a decrease in general government transfers, mainly international cooperation.
Capital-Account Transactions (table 1)
Capital-transfer receipts decreased $38 million to $6 million in the second quarter. Capital-transfer payments decreased $0.4 billion to $1.5 billion, mostly reflecting a decrease in infrastructure grants.
Financial-Account Transactions (tables 1, 6, 7, and 8 and chart 3)
Net financial-account transactions were −$304.3 billion in the second quarter, reflecting net U.S. borrowing from foreign residents.
Financial assets (tables 1, 6, 7, and 8)
Second-quarter transactions increased U.S. residents’ foreign financial assets by $153.1 billion. Transactions increased portfolio investment assets, mainly long-term debt securities, by $109.4 billion; direct investment assets, mainly equity, by $47.5 billion; and reserve assets by $0.7 billion. Transactions decreased “other investment assets” by $4.5 billion, resulting from a decrease in loans that was mostly offset by an increase in deposits.
Liabilities (tables 1, 6, 7, and 8)
Second-quarter transactions increased U.S. liabilities to foreign residents by $387.0 billion. Transactions increased portfolio investment liabilities, both long-term debt securities and equity, by $258.7 billion; direct investment liabilities, mostly equity, by $89.5 billion; and “other investment liabilities,” mostly deposits, by $38.8 billion.
Financial derivatives (table 1)
Net transactions in financial derivatives were –$70.5 billion in the second quarter, reflecting net U.S. borrowing from foreign residents.
Table A. Updates to First-Quarter 2024 International Transactions Accounts Balances [Billions of dollars, seasonally adjusted] |
| | Preliminary estimates | Revised estimates |
|---|
| Current-account balance | –237.6 | −241.0 |
| Goods balance | −277.7 | −276.9 |
| Services balance | 73.2 | 73.7 |
| Primary income balance | 12.3 | 6.7 |
| Secondary income balance | −45.5 | −44.4 |
| Net financial-account transactions | −197.3 | −185.8 |
| U.S. Bureau of Economic Analysis |
Next release: December 18, 2024, at 8:30 a.m. EST
U.S. International Transactions, 3rd Quarter 2024
1 U.S. international transactions are presented in current dollars in accordance with international statistical presentation guidelines. For a comparison of current-dollar, or nominal, and inflation-adjusted, or real, measures of international transactions, see “SECTION 4 – FOREIGN TRANSACTIONS” of the National Income and Product Accounts.
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