BEA News: U.S. International Transactions, 2nd Quarter 2024 The U.S. Bureau of Economic Analysis (BEA) has issued the following news release today: The U.S. current-account deficit 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 full text of the release can be found at www.bea.gov/news/2024/us-international-transactions-2nd-quarter-2024. EMBARGOED UNTIL RELEASE AT 8:30 a.m. EDT, Thursday, September 19, 2024  U.S. International Transactions, 2nd Quarter 2024 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.