U.S. Current-Account Deficit Increases in Fourth Quarter 2017

The U.S. current-account deficit increased to $128.2 billion (preliminary) in the fourth quarter of 2017 from $101.5 billion (revised) in the third quarter of 2017. As a percentage of U.S. GDP, the deficit increased to 2.6 percent from 2.1 percent. The previously published current-account deficit for the third quarter was $100.6 billion.

• The deficit on international trade in goods increased to $214.3 billion from $195.3 billion as goods imports increased more than goods exports.
• The surplus on international trade in services increased to $60.4 billion from $60.0 billion as services exports increased more than services imports.
• The surplus on primary income decreased to $57.2 billion from $58.5 billion as primary income payments increased more than primary income receipts.
• The deficit on secondary income (current transfers) increased to $31.5 billion from $24.7 billion as secondary income receipts decreased and secondary income payments increased.

Net U.S. borrowing from financial-account transactions was $29.8 billion in the fourth quarter, down from $121.8 billion in the third.

• Net U.S. acquisition of financial assets excluding financial derivatives was $177.9 billion in the fourth quarter, down from $350.7 billion in the third.
• Net U.S. incurrence of liabilities excluding financial derivatives was $208.4 billion in the fourth quarter, down from $491.0 billion in the third.
• Net lending in financial derivatives other than reserves was $0.8 billion in the fourth quarter, down from $18.6 billion in the third.

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