The US Current Account Deficit Jumps to a 12-Year High in 2020

The current account deficit in the United States accelerated to a 12-year high in 2020, as the Covid-19 pandemic severely affected the flow of goods and services.

The US Commerce Department said the current account deficit, which measures the flow of goods, services, and investments into and out of the country, jumped 34.8% to $647.2 billion last year. That was the largest deficit since 2008.

The gap in the current account balance accounted for 3.1% of GDP last year, which is also the largest percentage since 2008 and up from 2.2% in 2019.

Exports of goods and services to foreigners and incoming income fell by 578.3 billion dollars to 3.23 trillion dollars in 2020. Imports of goods and services from foreigners and income paid to them decreased 411.3 billion dollars to 3.87 trillion dollars.

The trade deficit jumped to $681.7 billion in 2020 from $576.9 billion in 2019.