U.S. current account deficit widens sharply in third quarter
The U.S. current account deficit widened 8.3% to $214.8 billion in the third quarter, the Commerce Department said Tuesday. The widening of the deficit reflected a reduced surplus on services, which have been hit hard by the coronavirus. The goods deficit widened in the third quarter. Strong U.S. domestic demand for goods continues to outpace foreign consumption, according to economists.
The current account reveals if a country is a net lender or debtor. The current account gap represented 3.7% of gross domestic product last quarter, up from 3.5% in the July-September quarter.