US Current Account Deficit Widens In Q3 By $16.5 Billion, The Highest In 15 Years

The U.S. current account deficit widened in the third quarter by 8.3%, or $16.5 billion, bringing the final figure to its highest level in 15 years.

On Tuesday, the Bureau of Economic Analysis (BEA) shared its latest data on the U.S. current account deficit, which measures the inflows and outflows of goods between Americans and the rest of the world.

It found the third quarter of 2021 produced a final total of $214.8 billion. This figure accounts for 3.7% of total gross domestic product, higher than the 3.5% recorded in the second quarter.

According to the BEA, the widening of the current account deficit in the third quarter reflected a reduced surplus of services and expanded deficits on secondary income.

The COVID-19 pandemic ravaged global trade when it emerged and the consequences of it are still being felt in today's supply chain bottlenecks that are contributing to inflation in the U.S. and elsewhere. Despite this, the BEA said that nearly every category of goods imported increased in the third quarter for the fifth consecutive period.

On Dec. 7, the BEA reported that the trade deficit stood at $67.1 billion, down by 17.6%. Meanwhile, the politically sensitive trade deficit with China stood at $28.3 billion, falling by $3.2 billion as U.S. exports rose $2.8 billion to $13.8 billion. Imports from China fell slightly by $400 million.