Published: 2023-12-19T15:06:31.000Z
Preview: Due December 20 - U.S. Q3 Current Account - Lowest deficit since Q1 2021
Senior Economist , North America
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We expect a Q3 US current account deficit of $196.0bn, or 2.8% of GDP, down from $212.1bn in Q2 when the deficit was 3.1% of GDP. This will be the lowest deficit since Q1 2021 and the smallest deficit as a percentage of GDP since Q1 2020.
Monthly trade data shows a narrower goods deficit of $261.1bn and a wider services surplus of $76.2bn. These will more than fully explain the narrowing of the current account deficit. Still to be released are data on primary (investment) income and secondary (unilateral transfers) income. However Fed flow of funds data suggests modest deteriorations in both balances to follow modest improvements in Q2.
