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.
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.
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