(March 17, 2008) – This morning, the BEA released U.S. International Transactions: Fourth Quarter and Year 2007 Current Account , reporting that the U.S. current-account deficit decreased to $172.9 billion in Q4/07 from $177.4 billion in Q3/07. The decrease was more than accounted for by increases in the surpluses on income and on services.
The deficit on goods and services increased to $177.9 billion in the fourth quarter from $172.6 billion in the third. The surplus on income increased to $33.0 billion in the fourth quarter from $21.3 billion in the third, while net unilateral current transfers to foreigners were $28.1 billion in the fourth quarter, up from $26.2 billion in the third.
The deficit on goods decreased to $815.4 billion in 2007 from $838.3 billion in 2006. Goods exports increased to $1,149.2 billion from $1,023.1 billion. The largest increases were in nonagricultural industrial supplies and materials and in capital goods. Goods imports increased to $1,964.6 billion from $1,861.4 billion. The increase was largely accounted for by increases in consumer goods, petroleum and products, and capital goods.
Income receipts on U.S.-owned assets abroad increased to $779.3 billion from $647.6 billion. Income payments on foreign-owned assets in the United States increased to $698.2 billion from $604.4 billion.
Net financial inflows–net acquisitions by foreign residents of assets in the United States less net acquisitions by U.S. residents of assets abroad–were $657.4 billion in 2007, down from $833.2 billion in 2006.
For the full year 2007, the U.S. current-account deficit decreased to $738.6 billion from $811.5 billion in 2006. The $72.9 billion decrease was more than accounted for by increases in the surpluses on income and on services and a decrease in the deficit on goods.
The deficit on goods decreased to $815.4 billion in 2007 from $838.3 billion in 2006. Goods exports increased to $1,149.2 billion from $1,023.1 billion. Goods imports increased to $1,964.6 billion from $1,861.4 billion.
Income receipts on U.S.-owned assets abroad increased to $779.3 billion from $647.6 billion. Income payments on foreign-owned assets in the United States increased to $698.2 billion from $604.4 billion.
U.S.-owned assets abroad increased $1,206.3 billion in 2007, following an increase of $1,055.2 billion in 2006. Foreign-owned assets in the United States increased $1,863.7 billion in 2007, following an increase of $1,859.6 billion in 2006. Of particular interest are growing long-term direct investments in both directions. U.S. direct investment abroad increased $335.4 billion in 2007, following an increase of $235.4 billion in 2006. Foreign direct investment in the United States increased $204.4 billion in 2007, following an increase of $180.6 billion in 2006.
JR
