U.S. Current Account Deficit Falls to Smallest Share of GDP Since Early 2020
The U.S. current account deficit narrowed by 9.2 percent to $226.4 billion in the third quarter. This shift was driven by tariff policies and rising primary income.
Insights:
The U.S. current account deficit narrowed significantly in the third quarter of 2024, contracting by $22.8 billion to reach $226.4 billion. This 9.2 percent decline brought the deficit to 2.9 percent of gross domestic product, its lowest level since the first quarter of 2020. The results outperformed expectations from economists polled by Reuters, who had predicted a larger deficit of $238.4 billion for the 
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