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The U.S. current-account deficit--the combined balances on trade in
goods and services, income, and net unilateral current transfers--decreased to
$172.9 billion (preliminary) in the fourth quarter of 2007 from $177.4 billion
(revised) in the third quarter.  The decrease was more than accounted for by
increases in the surpluses on income and on services.  Increases in the
deficit on goods and in net unilateral current transfers to foreigners were
partly offsetting.

Goods and services

       The deficit on goods and services increased to $177.9 billion in the
fourth quarter from $172.6 billion in the third.

       Goods

       The deficit on goods increased to $208.1 billion in the fourth quarter
from $200.5 billion in the third.

       Goods exports increased to $304.3 billion from $297.1 billion.  The
increase was largely accounted for by increases in nonagricultural industrial
supplies and materials and in capital goods.

       Goods imports increased to $512.3 billion from $497.7 billion. The
increase was more than accounted for by a large increase in petroleum and
products.  Nonpetroleum products decreased as a result of decreases in
nonpetroleum industrial supplies and materials and in automotive vehicles,
parts, and engines.

       Services

       The surplus on services increased to $30.2 billion in the fourth quarter
from $28.0 billion in the third.

       Services receipts increased to $128.0 billion from $122.6 billion.  The
increase was largely accounted for by increases in other private services
(such as business, professional, and technical services, insurance services,
and financial services), in travel, and in other transportation (such as
freight and port services).

       Services payments increased to $97.8 billion from $94.6 billion.  The
largest increase was in other private services.  All other services
categories also increased.

Income

       The surplus on income increased to $33.0 billion in the fourth quarter
from $21.3 billion in the third.

       Investment income

       Income receipts on U.S.-owned assets abroad decreased to $203.5 billion
from $205.7 billion.  A decrease in other private receipts (which consists of
interest and dividends) was partly offset by an increase in direct investment
receipts.

       Income payments on foreign-owned assets in the United States decreased
to $168.8 billion from $182.6 billion.  The decrease was more than accounted
for by decreases in direct investment payments and, to a lesser extent, in
other private payments (which consists of interest and dividends).  U.S.
Government payments (which consists of interest) increased.

       Compensation of employees

       Receipts for compensation of U.S. workers abroad were nearly unchanged
at $0.8 billion, and payments for compensation of foreign workers in the United
States edged up to $2.5 billion.

Unilateral current transfers

       Net unilateral current transfers to foreigners were $28.1 billion in the
fourth quarter, up from $26.2 billion in the third.  The increase was more than
accounted for by an increase in U.S. Government grants.

                                Capital Account

       Net capital account payments (outflows) were virtually unchanged at $0.6
billion in the fourth quarter.

                               Financial Account

       Net financial inflows--net acquisitions by foreign residents of assets
in the United States less net acquisitions by U.S. residents of assets abroad--
were $230.1 billion in the fourth quarter, up from $111.1 billion in the third.
Net acquisitions by foreign residents picked up, and net acquisitions by U.S.
residents slowed.

U.S.-owned assets abroad

       U.S.-owned assets abroad increased $116.5 billion in the fourth quarter,
following an increase of $174.0 billion in the third.

       U.S. claims on foreigners reported by U.S. banks increased $43.0 billion
in the fourth quarter, following an increase of $102.5 billion in the third.

       Net U.S. purchases of foreign securities were $4.2 billion in the fourth
quarter, down sharply from $100.2 billion in the third.  Transactions in foreign
stocks shifted to net U.S. sales of $9.8 billion from net U.S. purchases of $56.9
billion.  Net U.S. purchases of foreign bonds were $14.0 billion, down from
$43.3 billion.

       U.S. direct investment abroad increased $116.4 billion in the fourth
quarter, following an increase of $58.7 billion in the third.  The pickup was
largely accounted for by a shift in net equity capital investment abroad from a
decrease to an increase.  In addition, net intercompany debt investment abroad
decreased less in the fourth quarter than in the third, and reinvested earnings
picked up.

       U.S. claims on unaffiliated foreigners reported by U.S. nonbanking
concerns decreased $70.8 billion in the fourth quarter, following a decrease of
$86.8 billion in the third.

       U.S. official reserve assets increased less than $0.1 billion in the
fourth quarter, following an increase of $0.1 billion in the third.

       U.S. Government assets other than official reserve assets increased
$23.6 billion in the fourth quarter, following a decrease of $0.6 billion in
the third.  The increase resulted from reciprocal currency arrangements between
the U.S. Federal Reserve System and foreign central banks.

Foreign-owned assets in the United States

       Foreign-owned assets in the United States increased $346.6 billion in
the fourth quarter, following an increase of $276.6 billion in the third.

       U.S. liabilities to foreigners reported by U.S. banks increased $94.9
billion in the fourth quarter, following an increase of $68.4 billion in the
third.

       Net foreign purchases of U.S. Treasury securities were $69.6 billion in
the fourth quarter, up from $50.3 billion in the third.

       Transactions in U.S. securities other than U.S. Treasury securities
shifted to net foreign purchases of $79.8 billion in the fourth quarter from
net foreign sales of $43.1 billion in the third.  Transactions in U.S. stocks
shifted to net foreign purchases of $55.6 billion from net foreign sales of
$19.9 billion.  Transactions in U.S. corporate bonds shifted to net foreign
purchases of $39.1 billion from net foreign sales of $7.0 billion.  Net foreign
sales of federally sponsored agency bonds were $15.0 billion, down from $16.3
billion.

       Foreign direct investment in the United States increased $39.9 billion
in the fourth quarter, following an increase of $101.3 billion in the third.
Slowdowns in net equity capital investment in the United States and, to a
lesser extent, in reinvested earnings were partly offset by a pickup in net
intercompany debt investment in the United States.

       U.S. liabilities to unaffiliated foreigners reported by U.S. nonbanking
concerns decreased $93.3 billion in the fourth quarter, following an increase
of $56.1 billion in the third.

       Foreign official assets in the United States increased $151.2 billion in
the fourth quarter, following an increase of $38.9 billion in the third.

       Net U.S. currency shipments to foreigners were $4.5 billion in the
fourth quarter, down from $4.7 billion in the third.

       The statistical discrepancy--errors and omissions in recorded
transactions--was a negative $56.6 billion in the fourth quarter, compared with
a positive $67.0 billion in the third.

       In the fourth quarter, the U.S. dollar depreciated 5 percent on a trade-
weighted quarterly average basis against a group of 7 major currencies.

                                 The Year 2007

                                Current Account

       The U.S. current-account deficit--the combined balances on trade in
goods and services, income, and net unilateral current transfers--decreased to
$738.6 billion (preliminary) in 2007 from $811.5 billion in 2006.  The decrease
was more than accounted for by increases in the surpluses on income and on
services and a decrease in the deficit on goods.  An increase in net unilateral
current transfers to foreigners was partly offsetting.

Goods and services

       The deficit on goods and services decreased to $708.5 billion in 2007
from $758.5 billion in 2006.

       Goods

       The deficit on goods decreased to $815.4 billion in 2007 from $838.3
billion in 2006.

       Goods exports increased to $1,149.2 billion from $1,023.1 billion.  The
largest increases were in nonagricultural industrial supplies and materials and
in capital goods.  Agricultural products, consumer goods, and automotive
vehicles, parts, and engines also contributed to the increase in total exports.

       Goods imports increased to $1,964.6 billion from $1,861.4 billion.  The
increase was largely accounted for by increases in consumer goods, petroleum
and products, and capital goods.

       Services

       The surplus on services increased to $106.9 billion in 2007 from $79.7
billion in 2006.

       Services receipts increased to $479.2 billion from $422.6 billion.  More
than half of the increase was accounted for by an increase in other private
services (such as business, professional, and technical services, insurance
services, and financial services).  The next largest increases were in travel,
royalties and license fees, and other transportation (such as freight and
port services).

       Services payments increased to $372.3 billion from $342.8 billion.
Nearly two-thirds of the increase was accounted for by an increase in other
private services.  The next largest increase was in travel.

Income

       The surplus on income increased to $74.3 billion in 2007 from $36.6
billion in 2006.

       Investment income

       Income receipts on U.S.-owned assets abroad increased to $779.3 billion
from $647.6 billion.  The increase was mostly accounted for by an increase in
other private receipts (which consists of interest and dividends).  Direct
investment receipts also increased.

       Income payments on foreign-owned assets in the United States increased
to $698.2 billion from $604.4 billion.  The increase was mostly accounted for
by an increase in other private payments (which consists of interest and
dividends).  U.S. Government payments (which consists of interest) also
increased.  In contrast, direct investment payments decreased.

       Compensation of employees

       Receipts for compensation of U.S. workers abroad edged up to $3.0
billion from $2.9 billion, and payments for compensation of foreign workers in
the United States increased to $9.7 billion from $9.4 billion.

Unilateral current transfers

       Net unilateral current transfers to foreigners were $104.4 billion in
2007, up from $89.6 billion in 2006.  The increase was almost completely
accounted for by increases in private remittances and other transfers and in
U.S. Government grants.

                                Capital Account

       Net capital account payments (outflows) were $2.3 billion in 2007, down
from $3.9 billion in 2006.

                               Financial Account

       Net financial inflows--net acquisitions by foreign residents of assets
in the United States less net acquisitions by U.S. residents of assets abroad--
were $657.4 billion in 2007, down from $833.2 billion in 2006.  Net
acquisitions by U.S. residents increased much more than net acquisitions by
foreign residents.

U.S.-owned assets abroad

       U.S.-owned assets abroad increased $1,206.3 billion in 2007, following
an increase of $1,055.2 billion in 2006.

       U.S. claims on foreigners reported by U.S. banks increased $589.8
billion in 2007, following an increase of $454.6 billion in 2006.

       Net U.S. purchases of foreign securities were $273.9 billion in 2007,
down from $289.4 billion in 2006.  Net U.S. purchases of foreign stocks were
$131.0 billion, down from $138.5 billion.  Net U.S. purchases of foreign bonds
were $142.9 billion, down from $150.9 billion.

       U.S. direct investment abroad increased $335.4 billion in 2007,
following an increase of $235.4 billion in 2006.  The pickup was largely
accounted for by pickups in net equity capital investment abroad and, to a
lesser extent, in reinvested earnings.  In addition, net intercompany debt
investment abroad decreased less in 2007 than in 2006.

       U.S. claims on unaffiliated foreigners reported by U.S. nonbanking
concerns decreased $15.8 billion in 2007, following an increase of $83.5
billion in 2006.

       U.S. official reserve assets increased $0.1 billion in 2007, following a
decrease of $2.4 billion in 2006.

       U.S. Government assets other than official reserve assets increased
$22.9 billion in 2007, following a decrease of $5.3 billion in 2006.  The
increase resulted from reciprocal currency arrangements between the U.S.
Federal Reserve System and foreign central banks.

Foreign-owned assets in the United States

       Foreign-owned assets in the United States increased $1,863.7 billion in
2007, following an increase of $1,859.6 billion in 2006.

       U.S. liabilities to foreigners reported by U.S. banks increased $510.9
billion in 2007, following an increase of $434.4 billion in 2006.

       Transactions in U.S. Treasury securities shifted to net foreign
purchases of $166.3 billion in 2007 from net foreign sales of $35.9 billion in
2006.

       Net foreign purchases of U.S. securities other than U.S. Treasury
securities were $391.9 billion in 2007, down from $592.0 billion in 2006.  Net
foreign purchases of U.S. stocks were $183.4 billion, up from $142.8 billion.
Net foreign purchases of U.S. corporate bonds were $246.7 billion, down from
$412.3 billion.  Transactions in federally sponsored agency bonds shifted to
net foreign sales of $38.2 billion from net foreign purchases of $36.9 billion.

       Foreign direct investment in the United States increased $204.4 billion
in 2007, following an increase of $180.6 billion in 2006.  The pickup was more
than accounted for by a pickup in net equity capital investment in the United
States.  In contrast, net intercompany debt investment in the United States
shifted from an increase to a decrease, and reinvested earnings slowed.

       U.S. liabilities to unaffiliated foreigners reported by U.S. nonbanking
concerns increased $166.6 billion in 2007, following an increase of $235.8
billion in 2006.

       Foreign official assets in the United States increased $412.7 billion in
2007, following an increase of $440.3 billion in 2006.

       Net U.S. currency shipments to foreigners were $10.9 billion in 2007,
down from $12.6 billion in 2006.

       The statistical discrepancy--errors and omissions in recorded
transactions--was a positive $83.6 billion in 2007, compared with a negative
$17.8 billion in 2006.

       In 2007, the U.S. dollar depreciated 6 percent on a trade-weighted
yearly average basis against a group of 7 major currencies.

                                   Revisions

       The first three quarters of 2007 were revised to reflect revised
seasonal adjustments and, for the third quarter, receipt of new or revised data.
Revisions to the first and second quarters were small.  In the third quarter,
the current-account deficit was revised to $177.4 billion from $178.5 billion.
The goods deficit was revised to $200.5 billion from $199.7 billion; the
services surplus was revised to $28.0 billion from $26.5 billion; the surplus
on income was revised to $21.3 billion from $20.5 billion; and net unilateral
current transfers to foreigners were revised to $26.2 billion from $25.8
billion.  Net financial inflows were revised to $111.1 billion from $93.4
billion.

                            *          *          *

       Release dates in 2008:

       Fourth quarter and year 2007.....................March 17, 2008 (Monday)
       First quarter 2008...............................June 17, 2008 (Tuesday)
       Second quarter 2008.......................September 17, 2008 (Wednesday)
       Third quarter 2008.........................December 17, 2008 (Wednesday)

                            *          *          *

       Summary BEA estimates are available on recorded messages at the time of
public release at the following telephone numbers:

                       (202) 606-5306 Gross domestic product
                                -5303 Personal income and outlays

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Survey of Current Business; and BEA news releases are available without charge
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