Current Account Deficit Falls to $113.3B in 4Q

WASHINGTON — The U.S. current account deficit dropped to $113.3 billion in the fourth quarter of 2010, down for the first time in 15 months, the Commerce Department said Wednesday.

The third-quarter deficit was revised lower to $125.5 billion from $127.2 billion initially estimated.

Economists expected a $110 billion current account deficit in the fourth quarter, according to the median estimate from Thomson Reuters.

The fourth-quarter deficit represented 3.05% of gross domestic product, down from 3.40% in the third quarter.

It was the smallest deficit percentage of GDP since the first quarter of 2010.

The deficit of goods and services decreased to $116.7 billion in the fourth quarter from $132.6 billion in the third quarter.

Foreign-owned assets in the U.S. dropped 44% to $273.6 billion, down from $488.8 billion in the third quarter. Foreigners bought fewer Treasuries, corporate bonds and agency debt, but stock purchases increased.

U.S.-owned assets abroad also declined, dropping to $241.2 billion.

In 2010, the United States had a $470.2 billion current account deficit, or 3.2% of GDP. The 2009, account deficit, at $378.4 billion, was the smallest since 1999.

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