Thursday March 15, 8:56 am Eastern Time
Current Account Gap Sets a New Record
WASHINGTON (Reuters) - The U.S. current account, the broadest measure of foreign trade, widened to a new record in the fourth quarter and for all of 2000 as imports continued to outpace exports, the government said on Thursday.
For all of 2000, the current account deficit increased to a record $435.4 billion in 2000, from the previous record of $331.5 billion set in 1999, the Commerce Department said.
The department said the deficit in the fourth quarter increased to $115.3 billion, from the previous record of $113.1 billion set in the third quarter.
The estimate for the third quarter was revised down from an earlier figure of $113.8 billion.
The gap in the current account for the fourth quarter was below the average estimate of $118.3 billion in a poll of analysts by Reuters.
Most of the increase was due to the rise in the goods and services deficit, although net outflows for unilateral current transfers, which includes foreign aid,also rose.
A decline in the deficit on investment income in 2000 partially offset those increases, Commerce said.