Published: 2026-03-25T13:31:18.000Z
US Q4 Current Account - Deficit fall assisted by bounce in investment surplus
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The Q4 current account deficit of $190.7bn is significantly lower than expected, down from $239.1bn in Q3, and the lowest since Q1 2021. The correction from Q1’s record pre-tariff deficit of $438.3bn continues.
The surprise was due to a strong primary (investment) income surplus of $23.9bn, up from a $2.5bn deficit in Q3 and the highest since Q4 2022.
The goods and services deficit of $160.0bn, down from $174.4bn in Q3, was already visible in trade data.
The final component of the deficit, that in secondary (transfers) income saw a modest decline in its deficit, to $54.6bn from $57.2bn in Q3.
The Q4 deficit is 2.4% of GDP compared with 3.1% in Q3. In 2025 the deficit of $111.6bn, down marginally from $118.5bn in 2024, was 3.6% of GDP.