WASHINGTON — The U.S. Q3 current account was reported as better than expected at a $94.8 billion deficit or 2.2% of GDP, improved from 2.3% in Q2 or a $1.8 billion betterment. The percentage was the lowest since Q1:1998.
This came despite trade erosion, and as net interest income increased and unilateral transfers (i.e., lower private remittances) fell.
The deficit, an on-going problem as the U.S. continues to import inordinate amounts of foreign goods, mainly was financed via foreigners buying U.S. securities. Foreign private accounts bought $63.4 billion Treasuries, $58.6 billion stocks, $71.7 billion corporate bonds, and $1.3 billion agencies.
Direct investment was down $1.2 billion and U.S. official reserves rose $1 billion over the quarter.
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