U.S. Current-Account Deficit Narrows in 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 $152.8 billion, or 15.7 percent, to $818.8 billion in 2023. The narrowing mostly reflected a reduced deficit on goods. The 2023 deficit was 3.0 percent of current-dollar gross domestic product, down from 3.8 percent in 2022.

• Exports of goods decreased $37.2 billion to $2.05 trillion, while imports of goods decreased $160.6 billion to $3.11 trillion.
   
• Exports of services increased $70.6 billion to $999.1 billion, while imports of services increased $22.6 billion to $719.3 billion.
   
• Receipts of primary income increased $198.1 billion to $1.42 trillion, while payments of primary income increased $210.0 billion to $1.28 trillion.
   
• Receipts of secondary income decreased $3.4 billion to $184.9 billion, while payments of secondary income increased $3.3 billion to $360.6 billion.
   
• Net financial-account transactions were −$906.3 billion, reflecting net U.S. borrowing from foreign residents.

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