The U.S. current account deficit grew by $20.6 billion (annual rate) in the first quarter, reaching $142.4 billion. A wider trade deficit and larger unilateral transfers offset a slight decline in net U.S. interest payments to foreigners. Monthly data on trade in goods and services suggest that the trade deficit, the largest component of the current account balance, will widen further in the second quarter.
Suggested citation: “International Trade,” Federal Reserve Bank of Cleveland, Economic Trends, no. 96-09, pp. 18, 09.01.1996.