March 21, 2024
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 $1.6 billion, or 0.8 percent, to $194.8 billion in the fourth quarter of 2023. The narrowing primarily reflected a reduced deficit on secondary income that was mostly offset by an expanded deficit on goods. The fourth-quarter deficit was 2.8 percent of current-dollar gross domestic product, down less than 0.1 percent from the third quarter.
- Exports of goods decreased $1.4 billion to $514.4 billion, while imports of goods increased $4.4 billion to $779.4 billion.
- Exports of services increased $2.0 billion to $254.4 billion, while imports of services increased $2.5 billion to $181.5 billion.
- Receipts of primary income decreased $3.7 billion to $361.6 billion, while payments of primary income decreased $2.9 billion to $325.5 billion.
- Receipts of secondary income increased $5.0 billion to $49.6 billion, while payments of secondary income decreased $3.6 billion to $88.5 billion.
- Net financial-account transactions were −$221.1 billion, reflecting net U.S. borrowing from foreign residents.
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