The U.S. current account is measured quarterly. In 2001:IQ, the current account deficit decreased to $109.6 (from $116.3 billion in 2000:IVQ). This decrease represents the first reversal in four years of the decade-long deterioration in the current account balance. Of the four components that constitute the current account—trade in goods, trade in services, income, and net unilateral current transfers—three components are in deficit positions and one, trade in services, is in a surplus position. The deterioration of the current account balance is closely related to trade in goods. Consistent with movements in the current account as a whole, the goods balance has deteriorated since mid-1997, with the deficit decreasing between 2000:IVQ and 2001:IQ. The other three components have remained fairly flat since 1997.
Suggested citation: "International Developments," Federal Reserve Bank of Cleveland, Economic Trends, no. 01-07, pp. 08-09, 07.01.2001.