The US current account balance for the 2Q 2020
- the US current account balance for the 2nd quarter came in at $-170.5 billion vs. an estimate of $-160 billion
- the prior quarter came in at $-111.5 billion revised from $104 billion previously reported
- the deficit is the largest since the 3Q of 2008
- the gain was a 52.9% increase from the 2Q of 2020
- The 2Q deficit was 3.5% of current dollar GDP. That is up from 2.1% and first-quarter
- The gain in the deficit was mostly reflected on expanded deficit on goods and reduce surpluses on the primary income and on services.
- Exports decreased by -$114.6 billion mostly reflecting decreases in industrial supplies and materials, mainly petroleum and products
- imports declined by $-87.1 billion mostly reflecting decreases in automotive vehicles, parts and engines.
All the major categories declines in the 2nd quarter declining in part due to the Covid 19 as businesses were operating at limited capacity or ceased operations completely, and the movement of travelers across borders was restricted.
Both the imports of goods and services and income payments and exports of goods and services and income receipts plunged.
the US current account reflects the combined bounces on trade in goods and services and income flows between US residents and residents of other countries.
For the report from the Bureau of economic analysis CLICK HERE.