US Current Account: A World in Deficit
Blake HuberPresident Trump has levied severe tariffs on trading partners because of the U.S. has largely run a negative trade balance for decades. On a global basis, trades should be a zero-sum game; however, it is not. This presentation shows that the average developed economy runs a current account deficit in the world today.
US Current Account: A World in Deficit
Market Update - March 20, 2026
Summary
The US Current Account, a key component of the country's balance of payments, has been a subject of investors and policymakers alike. The Current Account measures the difference between a country's exports and imports of goods and services, as well as its net income from foreign investments. In this article, we delve into the latest developments in the US Current Account and explore its implications for the US economy.
Key Points
- The US Current Account deficit has been a persistent feature of the US economy, with the deficit widening in recent years due to a strong dollar and weak global demand.
- The Current Account deficit is financed by foreign capital inflows, including foreign direct investment (FDI) and portfolio investment.
- The US Current Account deficit has implications for the country's economic growth, inflation, and exchange rates.
- The US trade deficit has been a contentious issue in the 2026 US presidential election, with some candidates advocating for protectionist policies to reduce the deficit.
Download Full Presentation
Access the complete PDF with all details and charts