Survey of Current Business

Survey of Current Business
Chronicling 100 Years of the U.S. Economy

October 2022
Volume 102, Number 10

U.S. International Transactions

Second Quarter 2022

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The U.S. current-account deficit, which reflects the combined balances on trade in goods and services and income flows between U.S. residents and residents of other countries, narrowed by $31.5 billion, or 11.1 percent, to $251.1 billion in the second quarter of 2022 (chart 1 and table A). The revised first-quarter deficit was $282.5 billion.

The second-quarter deficit was 4.0 percent of current-dollar gross domestic product, down from 4.6 percent in the first quarter.

The $31.5 billion narrowing of the current-account deficit in the second quarter mostly reflected a decreased deficit on goods.

Exports of goods and services to, and income received from, foreign residents increased $82.8 billion to $1.11 trillion in the second quarter (charts 2 and 3 and tables A and B). Imports of goods and services from, and income paid to, foreign residents increased $51.3 billion to $1.36 trillion (charts 2 and 4 and tables A and C).

Trade in goods

Exports of goods increased $52.0 billion to $539.9 billion, and imports of goods increased $20.8 billion to $850.4 billion. The increases in both exports and imports mostly reflected an increase in industrial supplies and materials, primarily petroleum and products.

Trade in services

Exports of services increased $8.4 billion to $225.2 billion, and imports of services increased $10.2 billion to $168.2 billion. The increases in both exports and imports mainly reflected increases in travel, mostly other personal travel, and in transport, mostly air passenger transport.

Primary income

Receipts of primary income increased $21.1 billion to $299.1 billion, and payments of primary income increased $16.2 billion to $255.5 billion. The increases in both receipts and payments reflected increases in all major components. The increase in receipts was led by direct investment income, primarily earnings, and the increase in payments was led by other investment income, primarily interest.

Secondary income

Receipts of secondary income increased $1.4 billion to $43.6 billion, mostly reflecting an increase in general government transfers, primarily fines and penalties. Payments of secondary income increased $4.0 billion to $84.9 billion, reflecting increases in general government transfers, mostly international cooperation, and in private transfers, mostly insurance-related transfers.

Capital-transfer payments increased $1.9 billion to $3.8 billion in the second quarter, mostly reflecting an increase in U.S. government investment grants (table A).

Net financial-account transactions were −$159.5 billion in the second quarter, reflecting net U.S. borrowing from foreign residents.

Financial assets

Second-quarter transactions increased U.S. residents' foreign financial assets by $386.2 billion (charts 5 and 6 and table D). Transactions increased portfolio investment assets, mostly equity, by $279.8 billion; direct investment assets, mostly equity, by $99.1 billion; other investment assets by $6.1 billion, resulting from partly offsetting transactions in loans and deposits; and reserve assets by $1.2 billion.

Liabilities

Second-quarter transactions increased U.S. liabilities to foreign residents by $499.8 billion. Transactions increased portfolio investment liabilities, primarily long-term debt securities and equity, by $433.5 billion, and direct investment liabilities, primarily equity, by $67.0 billion. Transactions decreased other investment liabilities by $0.7 billion, primarily resulting from offsetting transactions in loans, deposits, and trade credit and advances.

Financial derivatives

Net transactions in financial derivatives were −$45.9 billion in the second quarter, reflecting net U.S. borrowing from foreign residents.

The U.S. international transactions statistics for the first quarter of 2022 have been updated to incorporate newly available and revised source data and updated seasonal adjustments (table E).