United States Current Account

The U.S. current account deficit narrowed by $6.3 billion, or 2.0%, to $303.9 billion in Q4 2024, down from a revised Q3 deficit of $310.3 billion and better than the market expectation of a $325.5 billion gap. The primary income balance shifted to a surplus of $2.3 billion from a deficit of $13.8 billion in the previous quarter, driven by higher direct investment income, mainly from earnings. Additionally, the secondary income gap decreased to $56.2 billion from $60.1 billion, while the services surplus rose to $76.1 billion from $73.2 billion. In contrast, the goods deficit widened to $326.1 billion from $309.6 billion, as exports fell by $10.8 billion, led by declines in capital goods, primarily civilian aircraft; computer accessories; and semiconductors, and consumer goods, particularly medicinal, dental, and pharmaceutical products. Considering 2024 full year, the current account deficit widened 25.2% to $1.13 trillion, representing 3.9% of GDP.