Updated
Updated · Bureau of Economic Analysis · Jun 24
U.S. Current-Account Deficit Widens to $226.8 Billion in Q1 as Primary Income Turns Negative
Updated
Updated · Bureau of Economic Analysis · Jun 24

U.S. Current-Account Deficit Widens to $226.8 Billion in Q1 as Primary Income Turns Negative

3 articles · Updated · Bureau of Economic Analysis · Jun 24

Summary

  • $226.8 billion marked the U.S. current-account deficit in the first quarter, up $5.8 billion from a revised $221.1 billion in Q4 and equal to 2.9% of GDP.
  • A swing in primary income from a fourth-quarter surplus to a first-quarter deficit drove the widening, even as the goods deficit narrowed.
  • Exports and income receipts rose $50.0 billion to $1.38 trillion, but imports and income payments climbed faster—up $55.8 billion to $1.61 trillion.
  • Net financial-account transactions were $209.0 billion, reflecting net U.S. borrowing from foreign residents as foreign liabilities increased $803.7 billion and U.S. foreign assets rose $527.3 billion.
  • The U.S. net international investment position improved to negative $21.27 trillion from a revised negative $21.87 trillion at the end of 2025, as liabilities fell on price changes despite the wider current-account gap.

Insights

The U.S. borrows more but its global wealth improves. How is this economic paradox possible?
With a ballooning deficit and $39 trillion in debt, is the U.S. economy heading for a foreign-funded crisis?
America's investment income advantage has vanished. What will replace this pillar of the U.S. economy?