The US current account deficit was extended to a historical maximum in the first quarter, since companies anticipated imports to avoid the high tariffs of President Donald Trump about imported goods.
The Office of Economic Analysis of the Department of Commerce reported Tuesday that the current account deficit, which measures the flow of goods, services and investments that enter and leave the country, increased by 138.2 billion dollars, or 44.3%, reaching a historical maximum of 450.200 million. Fourth quarter data were checked to show the gap at 312,000 million, instead of the 303.9 billion dollars previously informed.
Economists had predicted that the current account deficit would increase to 443,300 million dollars the last quarter.
The deficit represented 6.0% of the gross domestic product, the highest since the third quarter of 2006, when it reached a maximum of 6.3%. This figure represents an increase with respect to 4.2% of the October-December quarter.
Economists warned that the growing current account gap and the growing budget deficit of the federal government could represent a risk for the long -term dollar. The wide Trump tariffs reduced value to the condition of safe dollar shelter.
Assets of goods increased by 158.2 billion dollars, reaching a record of 1 billion dollars, driven by non -monetary gold and consumer goods, mainly medicinal, dental and pharmaceutical products. Services imports decreased by 1.8 billion dollars, to 217.8 billion dollars, weighed down for the decrease in charges for the use of intellectual property, such as licenses for the use of research and development results.
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These were the exports that were affected by Trump’s policies
Exports of goods increased by 21.1 billion dollars, to 539,000 million, the highest level from the third quarter of 2022, driven by capital goods, mainly civil aircraft and accessories, peripherals and computer parts.
Services exports decreased by 4,400 million dollars, to 293.2 billion, weighed down by the decrease in governmental goods and services, such as military units and agencies. Personal trips also decreased, as well as professional services and management consulting.
The trade deficit of goods was extended to a record figure of 466,000 million dollars, from the 328.9 billion dollars of the fourth quarter. However, the avalanche of imports has decreased since then, since the early demand for goods continued its course. Assets of goods collapsed 19.9%, a record, up to 277.9 billion dollars in April, the government said this month.
Primary income revenues decreased 22.9 billion dollars, to 355.1 billion, last quarter. Primary income payments also decreased 13.7 billion, to 362.7 billion dollars. Both income and primary income payments were limited by the decrease in direct investment income, mainly profits.
Secondary income revenue increased 2.3 billion dollars, to 49.6 billion, driven by fines and sanctions. Secondary income payments decreased 8.4 billion, to 101,500 million dollars, due to the decrease in government transfers.
With Reuters information
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