The US current account deficit dropped by 0.9% to total $217.9 billion in 4Q21, according to the US Bureau of Economic Analysis, down slightly from $219.9 billion in 3Q21.
The current account deficit has more than doubled from approximately $100 billion in 1Q16 to its current levels and now accounts for 3.6% of US GDP.
The deficit is largely driven by $756.9 billion in imported goods to the US offset somewhat by $473.5 billion in exports of goods, a $54 billion surplus in services and a $42 billion surplus in primary income such as investment portfolio income.
Fourth quarter transactions increased US residents’ foreign financial assets by $113.6 billion and US liabilities to foreign residents by $224 billion.
The US current account deficit widened by 33.4% in 2021 to reach $821.6 billion in 2021.