Economy

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The US announced Q2 2021 current account deficit grew to $190 billion or 3.3% of GDP, its largest since Q2 of 2007 from a downwardly revised $89 billion prior and compared to forecasts of $191 billion shortfall. Reduced surpluses on services and on primary income mostly offset by reduced deficit on secondary income.

 US Current Account Q2 2021

Highlights

  • Current-account $-190.3 billion v -193 billion estimate.
  • 1Q deficit $-196 billion 2Q deficit 3.3% of current dollar gross domestic product which is down from 3.4% in 1Q
  • The $0.9 billion widening mainly reflected reduce surpluses on services and on primary income that were mostly offset by reduced deficit on secondary income.
  • The services surplus shrank to $61 billion from $63 billion in Q1 amid higher demand for sea freight and air passenger transport and other personal travel;
  • Primary income surplus also fell slightly to $49 billion from $50 billion.
  • The secondary income gap narrowed to $31 billion from $34 billion, with decreases in both receipts and payments.
  • The goods deficit rose slightly to $269.7 billion from $268.9 billion in Q1, led by imports of industrial supplies and materials, mainly petroleum and products and metals and nonmetallic products.

Source: U.S. Bureau of Economic Analysis

From The TradersCommunity News Desk

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