The U.S. international transactions accounts record economic transactions between U.S. residents and residents of other countries. They cover trade in goods and services, investment income, transfers, capital-account transactions and cross-border financial flows.
In the original March 2025 release, the U.S. Bureau of Economic Analysis reported that the current-account deficit narrowed to $303.9 billion in the fourth quarter of 2024. The revised third-quarter deficit was $310.3 billion. The fourth-quarter deficit represented 4.1 percent of current-dollar gross domestic product.
This article explains the fourth-quarter and full-year 2024 results, the structure of the current account, the difference between the current and financial accounts and the effect of later revisions. It also adds current context using BEA information available in July 2026.
What Are U.S. International Transactions?
International transactions measure flows during a period. They are different from the international investment position, which measures stocks of assets and liabilities at a specific date.
BEA organises the international accounts into three broad sections:
- Current account: trade in goods and services, primary income and secondary income;
- Capital account: capital transfers and transactions in certain nonproduced, nonfinancial assets; and
- Financial account: transactions in direct investment, portfolio investment, other investment, reserve assets and financial derivatives.
Fourth-Quarter 2024 Current-Account Result
| Measure | Q4 2024 | Interpretation |
|---|---|---|
| Current-account deficit | $303.9 billion | Narrowed by $6.3 billion from the revised third quarter |
| Deficit as a share of GDP | 4.1% | Down from 4.2% in Q3 |
| Net financial-account transactions | −$385.3 billion | Net U.S. borrowing from foreign residents |
The quarterly deficit narrowed because the primary-income balance moved from a deficit to a surplus and because the services and secondary-income balances improved. These changes were largely offset by a wider deficit on goods.
The Four Main Parts of the Current Account
Goods
The goods balance records exports and imports of physical products. The United States normally records a goods deficit because goods imports exceed goods exports. In Q4 2024, the expanded goods deficit placed downward pressure on the overall current-account balance.
Services
Services include travel, transport, financial services, intellectual-property charges, telecommunications, business services and government services. The United States commonly records a services surplus, which partly offsets the goods deficit.
Primary income
Primary income includes compensation of employees and investment income such as interest, dividends and reinvested earnings. A shift from a primary-income deficit in Q3 to a surplus in Q4 was an important reason the total current-account deficit narrowed.
Secondary income
Secondary income includes transfers where no product or financial asset is received in direct exchange. Examples include certain government transfers, personal transfers and international assistance.
Capital-Account Transactions in Q4 2024
Capital-transfer receipts increased to $11.3 billion during the quarter. BEA explained that the result included receipts from foreign insurance companies for losses associated with Hurricane Milton. Capital-transfer payments declined to $1.1 billion, reflecting lower infrastructure grants.
Natural-disaster insurance recoveries illustrate why the capital account may move sharply in a particular quarter without representing ordinary recurring trade or income.
Financial-Account Transactions in Q4 2024
Net financial-account transactions were −$385.3 billion, indicating net U.S. borrowing from foreign residents under BEA’s sign convention.
| Financial-flow category | Q4 2024 transaction | Main driver |
|---|---|---|
| Increase in U.S. foreign financial assets | $41.4 billion | Direct and portfolio investment increases, partly offset by lower other-investment assets |
| Increase in U.S. liabilities to foreign residents | $406.6 billion | Large portfolio and direct-investment inflows |
| Net financial-derivative transactions | −$20.0 billion | Net borrowing through derivatives |
Full-Year 2024 International Transactions
For 2024 as a whole, net financial-account transactions were −$1.27 trillion. Transactions increased U.S. residents’ foreign financial assets by $855.9 billion and increased U.S. liabilities to foreign residents by $2.05 trillion.
The increase in U.S. assets included:
- $379.1 billion of direct-investment assets;
- $361.0 billion of portfolio-investment assets;
- $113.6 billion of other-investment assets; and
- $2.1 billion of reserve assets.
The increase in liabilities included $1.43 trillion of portfolio-investment liabilities, $388.0 billion of direct-investment liabilities and $235.5 billion of other-investment liabilities.
Original Estimates and Later Revisions
International-account estimates are revised as more complete survey, trade and financial-market information becomes available. The original March 2025 release reported a Q4 2024 current-account deficit of $303.9 billion. The June 2025 annual update revised the fourth-quarter deficit to $312.0 billion.
This does not make the original release useless. It means the figure should be described as the estimate published at that time, while current analysis should use BEA’s latest tables.
Current Context: First Quarter 2026
BEA’s June 2026 annual-update release reported a current-account deficit of $226.8 billion in Q1 2026, compared with a revised $221.1 billion in Q4 2025. The Q1 deficit represented 2.9 percent of current-dollar GDP.
The deficit widened because primary income moved from a surplus to a deficit, partly offset by a smaller goods deficit. The same release reported a U.S. net international investment position of −$21.27 trillion at the end of Q1 2026.
| Release context | Current-account deficit | Share of GDP |
|---|---|---|
| Q4 2024 — original March 2025 estimate | $303.9B | 4.1% |
| Q4 2024 — June 2025 revised estimate | $312.0B | 4.2% |
| Q1 2026 — June 2026 annual update | $226.8B | 2.9% |
Current Account vs Trade Deficit
The current-account deficit is broader than the goods-and-services trade deficit. The current account also includes primary income and secondary income. A country can therefore experience a wider goods deficit while its current-account deficit narrows because services or income balances improve.
Current Account vs Financial Account
The current account records transactions in goods, services and income. The financial account records how cross-border assets and liabilities change through transactions. A current-account deficit is generally associated with net borrowing from the rest of the world, although statistical discrepancies and capital-account transactions also affect the accounting relationship.
Why the Data Matter
- Trade analysis: The accounts separate goods and services flows.
- Investment analysis: They show direct, portfolio and other-investment transactions.
- External financing: They indicate the degree of net borrowing or lending with the rest of the world.
- Exchange-rate and policy analysis: Changes in imports, exports and capital flows can influence currency and interest-rate discussions.
- Business planning: Companies use international-account data to understand global demand and financing conditions.
Limitations When Interpreting the Figures
- Quarterly estimates are revised as better source data become available.
- Large one-time events, such as disaster-insurance receipts, can affect a quarter.
- Dollar values are not adjusted for inflation.
- A current-account deficit is not, by itself, proof of economic weakness or insolvency.
- Gross flows can be very large even when the net balance is smaller.
- Seasonal adjustment and annualisation conventions should be considered.
Frequently Asked Questions
What was the U.S. current-account deficit in Q4 2024?
The original March 2025 estimate was $303.9 billion. BEA later revised the quarter to $312.0 billion in the June 2025 annual update.
Why did the original Q4 2024 deficit narrow?
A shift in primary income from deficit to surplus and improvements in services and secondary income outweighed most of the effect of a wider goods deficit.
What does a negative financial-account balance mean in BEA’s presentation?
It generally indicates net U.S. borrowing from foreign residents under the sign convention used in the international transactions tables.
Is the current account the same as the trade balance?
No. The current account includes trade in goods and services plus primary and secondary income.
What is the latest release available in July 2026?
The latest BEA international-transactions release covers Q1 2026 and reports a current-account deficit of $226.8 billion.
Related Accounting and Economic Topics
- U.S. International Investment Position 2024
- U.S. International Investment Position Q1 2025
- U.S. Multinational Enterprises 2021
- GDP and Personal Income by State
Conclusion
The original Q4 2024 release showed the U.S. current-account deficit narrowing to $303.9 billion, or 4.1 percent of GDP. The improvement reflected income and services movements that outweighed most of the wider goods deficit. Financial-account transactions showed substantial net borrowing, with foreign acquisitions of U.S. portfolio and direct-investment liabilities playing a major role.
Because BEA revises the international accounts, historical articles should identify whether they use an original or revised estimate. For current analysis, the latest interactive tables and annual-update releases should be consulted.
Authoritative references: BEA — U.S. International Transactions, Q4 and Year 2024, BEA — International Transactions and Investment Position, Q1 2026, and BEA — International Transactions Data.