U.S. Current Account Deficit Widens in Fourth Quarter 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 $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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