US current account deficit jumps 7.2% in Q1

By Ovunc Kutlu

ISTANBUL (AA) - The US current account deficit jumped 7.2% in the first quarter of this year, compared to the fourth quarter of 2023, according to official data released Thursday.

The current account deficit, which reflects the combined balances on trade in goods and services and income flows between US residents and residents of other countries, widened by $15.9 billion to reach $237.6 billion in January-March period of this year, said the Bureau of Economic Analysis (BEA).

While the market expectation for the figure was to show a $207 billion deficit, the revised deficit in the fourth quarter of last year stood at $221.8 billion.

"The first-quarter deficit was 3.4 percent of current-dollar gross domestic product, up from 3.2 percent in the fourth quarter," the BEA said in a statement. "The $15.9 billion widening of the current-account deficit in the first quarter mostly reflected an expanded deficit on goods."

Exports of goods increased $2.3 billion to $516.1 billion, but imports of goods jumped $15.4 billion to reach $793.9 billion, it said.

"Exports of goods and services to, and income received from, foreign residents increased $17.0 billion to $1.20 trillion in the first quarter," the agency said. "Imports of goods and services from, and income paid to, foreign residents increased $32.9 billion to $1.44 trillion."