The US current account deficit improved from $310.2 billion in Q3 2024 to $303.9 billion in Q4 2024, beating the consensus projection that the deficit would widen to $325.5 billion.

• The $6.3 billion narrowing of the current-account deficit in the fourth quarter reflected a shift in the balance on primary income from a deficit in Q3 2024 to a surplus in Q4 2024 and changes in the balances on secondary income and on services that, collectively, were largely offset by an expanded deficit on goods.
• Exports of goods and services to, and income received from, foreign residents increased $16.1 billion to $1.22 trillion. Imports of goods and services from, and income paid to, foreign residents increased $9.7 billion to $1.53 trillion.