US Current Account Gap Widens in Q1

2025-06-24 12:41 By Agna Gabriel 1 min. read

The US current account deficit widened by $138.2 billion, or 44.3%, to $450.2 billion in Q1 2025, up from a revised Q4 deficit of $312 billion and worse than the market expectation of a $443.3 billion gap.

The goods deficit rose to $466 billion from $328.9 billion, as imports increased $158.2 billion to $1 trillion, led by nonmonetary gold and consumer goods, mostly medicinal, dental, and pharmaceutical products.

Exports increased $21.1 billion to $539 billion, led by capital goods, mainly civilian aircraft and computer accessories, peripherals, and parts.

Also, the services surplus narrowed to $75.4 billion from $78 billion, and the primary income balance shifted to a deficit of $7.6 billion from a $1.6 billion surplus in the previous period, due to a decrease in direct investment income, mostly earnings.

Meanwhile, the secondary income shortfall fell to $52 billion from $62.6 billion.



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The US current account deficit widened by $138.2 billion, or 44.3%, to $450.2 billion in Q1 2025, up from a revised Q4 deficit of $312 billion and worse than the market expectation of a $443.3 billion gap. The goods deficit rose to $466 billion from $328.9 billion, as imports increased $158.2 billion to $1 trillion, led by nonmonetary gold and consumer goods, mostly medicinal, dental, and pharmaceutical products. Exports increased $21.1 billion to $539 billion, led by capital goods, mainly civilian aircraft and computer accessories, peripherals, and parts. Also, the services surplus narrowed to $75.4 billion from $78 billion, and the primary income balance shifted to a deficit of $7.6 billion from a $1.6 billion surplus in the previous period, due to a decrease in direct investment income, mostly earnings. Meanwhile, the secondary income shortfall fell to $52 billion from $62.6 billion.
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