March 21, 2017

The U.S. current-account deficit decreased to $112.4 billion (preliminary) in the fourth quarter of 2016 from $116.0 billion (revised) in the third quarter of 2016. As a percentage of U.S. GDP, the deficit decreased to 2.4 percent from 2.5 percent. The previously published current-account deficit for the third quarter was $113.0 billion.

U.S. Current-Account and Component Balances Chart

The deficit on international trade in goods increased to $196.1 billion from $178.7 billion as goods imports increased and goods exports decreased.

  • The surplus on international trade in services increased to $63.8 billion from $62.4 billion as services exports increased more than services imports.
  • The surplus on primary income increased to $61.5 billion from $41.6 billion as primary income payments decreased and primary income receipts increased.
  • The deficit on secondary income (current transfers) increased to $41.5 billion from $41.4 billion as secondary income payments increased more than secondary income receipts.

Net U.S. borrowing from financial-account transactions was $92.0 billion in the fourth quarter, down from $224.4 billion in the third.

  • Net U.S. liquidation of financial assets excluding financial derivatives was $79.1 billion in the fourth quarter, a shift from net acquisition of $28.3 billion in the third.
  • Net U.S. incurrence of liabilities excluding financial derivatives was $12.4 billion in the fourth quarter, down from $259.2 billion in the third.
  • Net borrowing in financial derivatives other than reserves was $0.4 billion in the fourth quarter, a shift from net lending of $6.5 billion in the third.

For more information, read the full report.