Prior was -$190.7 billion The US current account deficit widened to $226.8 billion in Q1, a $5.8 billion or 2.6% deterioration from the revised $221.1 billion in Q4.
As a share of GDP it ticked up to 2.9% from 2.8%
The widening wasn’t about trade. The goods deficit actually narrowed, and exports of goods and services jumped $50.0 billion to $1.38 trillion. The culprit was primary income, which flipped from a Q4 surplus into a Q1 deficit.
That’s the income Americans earn on foreign assets versus what foreigners earn here, and the swing tells you something about relative returns and the rising cost of servicing a balance sheet that keeps getting more lopsided. Imports climbed $55.8 billion to $1.61 trillion, outpacing the export gain. Front-running tariffs or genuine demand?