US current account deficit expands by 11% in Q2 2024

The US current account deficit widened sharply during the second quarter of 2024, mostly reflecting an expanded deficit on goods for the same period.

The Commerce Department’s Bureau of Economic Analysis said today, Sept. 19, that the current account deficit, which measures the flow of goods, services and investments into and out of the country, added $25.8 billion, or 10.7%, to amount to $266.8 billion in Q2 2024.

The second-quarter account gap represented 3.7% of the US gross domestic product (GDP), up from 3.4% in the previous quarter.

“Exports of goods and services to, and income received from, foreign residents increased $4.9 billion to $1.20 trillion in the second quarter of this year. Imports of goods and services from, and income paid to, foreign residents increased $30.7 billion to $1.47 trillion,” read the report.

From a closer perspective, exports of goods shed $100 million to $516.7 billion for the same quarter. Meanwhile, the three-month exports of services climbed by $3.1 billion to $271.7 billion, with the total of the two items surging by $3 billion.

In the same vein, imports of goods rose by $20.1 billion to $813.9 billion in Q2 2024. Likewise, imports of services expanded by $2.9 billion to $197.7 billion during the same period, with total imports soaring by $23 billion.