Current Account Improves in Q4, But Record High Deficit in 2006

The U.S. Current Account deficit narrowed to 5.8 billion in the fourth quarter from 9.4 billion in the third quarter. But, the 2006 current account deficit (6.65 vs. 1.5 billion in 2005) is the largest on record. As a percentage of nominal GDP, the current account deficit was 6.47%, up from 6.35% in 2006. In the fourth quarter, the current account deficit was 5.82% of GDP, down from 6.89% in the third quarter. Of the nearly billion in improvement in the current account deficit,
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