In the first quarter of 2025, the United States experienced a significant widening of its current account deficit, which increased by $138.2 billion, or 44.3%, reaching a total of $450.2 billion. This was a notable rise from the revised deficit of $312 billion in the final quarter of the previous year and surpassed market projections, which anticipated a $443.3 billion shortfall.
The deficit in goods rose sharply to $466 billion, up from $328.9 billion, driven by a $158.2 billion increase in imports, which reached $1 trillion. This surge was primarily due to heightened demand for nonmonetary gold and consumer goods, especially in the medicinal, dental, and pharmaceutical sectors. Concurrently, exports grew by $21.1 billion to reach $539 billion, with capital goods being the main contributors, notably civilian aircraft and computer-related products such as accessories, peripherals, and parts.
Additionally, the services surplus experienced a reduction, decreasing to $75.4 billion from $78 billion. The primary income balance also shifted from a $1.6 billion surplus to a $7.6 billion deficit, primarily due to a decline in direct investment income, particularly in earnings. On a more positive note, the secondary income deficit improved, narrowing to $52 billion from the previous $62.6 billion.
