Sharecast News
23 Jun, 2022 13:58

US current account deficit hits record high in first quarter of 2022

maersk dl ship shipping china nz new zealand
Maersk freighterFlickr (PD)

America's current account deficit reached a fresh record high equivalent to 4.8% of the country's gross domestic product over the first three months of 2022.

According to the Department of Commerce, in seasonally adjusted terms, the US current account deficit yawned wider in the first quarter to reach -$291.4bn, against -$224.8bn during the previous three-month stretch.

Economists had penciled-in a deficit of -$284.8bn.

The current account encompasses a country's foreign trade position, net current transfers, and earnings on cross-border investments or current income.

In the last quarter of 2021, the current account deficit stood at 3.7% of GDP.

Mahir Rasheed and Kathy Bostjancic at Oxford Economics said the current account deficit was set to remain "historically elevated" over the course of 2022 due to a combination of sharp downward revisions to global growth and relatively healthier US domestic balance sheets, which would foster imbalanced growth in imports and exports.

Their forecast called for a deficit worth 4.6% of GDP across 2022, the largest since 2008, narrowing to 4.3% of national output in 2023.


News Source: © 2022 Web Financial Group (UK) Limited. All rights reserved and terms of use apply.

Important Legal Notice about News Sources: Pilling and Co Stockbrokers Ltd. is not responsible for the content or accuracy of third party news and we may not share the views of the author or publisher. We provide third party news for your convenience and information only and make no representation or endorsement whatsoever and hereby exclude all liability for any loss or damage that may be incurred by you as a result of your access or use. Please note that third party content may be subject to terms and conditions imposed by the third party owner of that content.

The value of investments can fall and you may get back less than you invested.

 

Important Legal Notice about News Sources

Pilling and Co Stockbrokers Ltd. is not responsible for the content or accuracy of third party news articles and we may not share the views of the author or publisher.

We provide third party news for your convenience and information only and make no representation or endorsement whatsoever and hereby exclude all liability for any loss or damage that may be incurred by you as a result of your access or use. Please note that third party content may be subject to terms and conditions imposed by the third party owner of that content.

The value of investments can fall and you may get back less than you invested.