FX.co ★ US Current Account Gap at Lowest Since 2021

The US current account deficit narrowed to a seasonally adjusted $190.7 billion in the fourth quarter of 2025, down from $239.1 billion in the previous quarter, marking the smallest shortfall since the first quarter of 2021. The goods deficit shrank to $241.5 billion from $265.9 billion, as imports declined more than exports, reflecting the impact of tariffs introduced by the US presidential administration. The primary income balance also improved significantly, shifting to a surplus of $23.9 billion from a deficit of $2.5 billion. Meanwhile, the services surplus eased slightly to $81.4 billion from $86.5 billion, and the secondary income deficit narrowed modestly to $54.6 billion from $57.2 billion. Overall, the current account deficit amounted to 2.4% of US GDP in the fourth quarter, down from 3.1% in the third quarter.