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 $7.6 billion, or 4.2 percent, to $188.5 billion in the fourth quarter of 2020. The widening mostly reflected an expanded deficit on goods and a reduced surplus on services that were partly offset by a reduced deficit on secondary income. The fourth quarter deficit was 3.5 percent of current dollar gross domestic product, up from 3.4 percent in the third quarter.
- Exports of goods increased $30.9 billion, to $387.5 billion, while imports of goods increased $36.4 billion, to $640.5 billion.
- Exports of services increased $3.8 billion, to $168.1 billion, while imports of services increased $6.9 billion, to $115.1 billion.
- Receipts of primary income increased $7.1 billion, to $248.4 billion, while payments of primary income increased $7.5 billion, to $200.5 billion.
- Receipts of secondary income decreased $1.0 billion, to $36.0 billion, while payments of secondary income decreased $2.4 billion, to $72.4 billion.
- Net financial account transactions were −$262.4 billion, reflecting net U.S. borrowing from foreign residents.
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