International Trade and Transactions
The current account deficit has been increasing for the past 12 years. In 2004:IQ, the current account deficit fell to 5.1% of GDP. (The current account balance is defined as exports less imports, income receipts on domestically owned assets abroad less income payments on foreign owned assets in the U.S., and net unilateral transfers, comprising gifts received less gifts bestowed.) As usual, the trade deficit in goods and services has been the chief cause of the declining current account balance.
Suggested citation: "International Trade and Transactions," Federal Reserve Bank of Cleveland, Economic Trends, no. 04-07, pp. 08-09, 07.01.2004.