The U.S. current-account deficit reached an annualized $245 billion in 1998:IIIQ, a rise of $18.4 billion over 1998:IIQ. The expansion of the current-account deficit in the third quarter reflects increases of $7.5 billion in the trade deficit, $8.3 billion in net interest and dividend payments to foreigners, and $2.6 billion in unilateral transfers to foreigners. The shortfall is likely to grow even more in 1998:IVQ, resulting in a deficit of $225 billion to $230 billion for 1998 as a whole.
Suggested citation: "International Developments," Federal Reserve Bank of Cleveland, Economic Trends, no. 99-01, pp. 18, 01.01.1999.