March 23, 2023
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, narrowed by $12.2 billion, or 5.6 percent, to $206.8 billion in the fourth quarter of 2022. The narrowing primarily reflected a reduced deficit on secondary income. Also contributing was an expanded surplus on services. The fourth-quarter deficit was 3.2 percent of current-dollar gross domestic product, down from 3.4 percent in the third quarter.
- Exports of goods decreased $31.1 billion to $514.9 billion, while imports of goods decreased $28.0 billion to $787.2 billion.
- Exports of services increased $6.1 billion to $242.8 billion, while imports of services increased $1.1 billion to $175.5 billion.
- Receipts of primary income increased $15.6 billion to $328.2 billion, while payments of primary income increased $18.1 billion to $288.9 billion.
- Receipts of secondary income increased $8.3 billion to $51.3 billion, while payments of secondary income decreased $4.5 billion to $92.4 billion.
- Net financial-account transactions were −$127.5 billion in the fourth quarter, reflecting net U.S. borrowing from foreign residents.
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