The
Department of Commerce reported on Tuesday that the current account (C/A) gap in
the U.S. widened by 8.3 percent q-o-q to $214.8 billion in the third quarter of
2021 from a revised $198.3 billion gap (from -$190.3 billion) in the prior
quarter. This was the largest C/A deficit since the third quarter of 2006.
The
deficit was 3.7 percentage of current-dollar GDP in the third quarter, up from
3.5 percent in the previous quarter.
Economists
had forecast a gap of $205.0
billion.
According
to the report, the $16.5 billion widening of the C/A gap in the third quarter reflected
decreased surpluses on services ($49.9 billion, down from $62.6 billion in the
second quarter) and on increased deficits on secondary income ($38.0 billion,
up from $30.1 billion) and on goods ($274.8 billion up from $269.6 billion),
which, however, were partly offset by a higher surplus on primary income ($48.2
billion, up from $38.8 billion).