U.S. Current Account Deficit Widens in 2020

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 $167.0 billion, or 34.8 percent, to $647.2 billion in 2020. The widening mostly reflected reduced surpluses on primary income and on services and an expanded deficit on goods. The 2020 deficit was 3.1 percent of current dollar gross domestic product, up from 2.2 percent in 2019.

• Exports of goods decreased $217.3 billion, to $1.44 trillion, while imports of goods decreased $166.1 billion, to $2.35 trillion.
   
• Exports of services decreased $183.7 billion, to $692.1 billion, while imports of services decreased $130.1 billion, to $458.3 billion.
   
• Receipts of primary income decreased $177.4 billion, to $958.3 billion, while payments of primary income decreased $122.6 billion, to $776.7 billion.
   
• Receipts of secondary income increased $0.1 billion, to $142.0 billion, while payments of secondary income increased $7.4 billion, to $289.1 billion.
   
• Net financial account transactions were −$743.6 billion, reflecting net U.S. borrowing from foreign residents.

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