A Look at the U.S. International Transactions
Third Quarter of 2024
This article highlights statistics on the U.S. International Transactions Accounts and the 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. These statistics are published by the U.S. Bureau of Economic Analysis (BEA) each quarter. Detailed statistics for U.S. international transactions and a description of the estimation methods are available on the BEA website. For the statistics, see “International Transactions” in BEA's Interactive Data Application. For the methods, see U.S. International Economic Accounts: Concepts and Methods.
- The current-account deficit widened by $35.9 billion, or 13.1 percent, to $310.9 billion in the third quarter of 2024—the largest level on record.
- The third-quarter widening reflected expanded deficits on secondary income, primary income, and goods.1
- The revised second-quarter 2024 primary income deficit is the first deficit since the third quarter of 2001. The deficit expanded to $15.5 billion in the third quarter.
- The primary income deficit was due to decreasing balances on the three major functional categories of direct, portfolio, and “other investment.”
- The gradual reduction of the surplus suggests investments in the United States have been relatively more profitable than investments overseas in recent years.
- The third-quarter deficit was 4.2 percent of nominal gross domestic product, up from 3.7 percent in the second quarter.
- The third-quarter percentage was higher than the 10-year average of 2.7 percent but below the record of 6.3 percent in the third quarter of 2006.
- Exports of goods and services and income receipts increased $6.0 billion, or 0.5 percent, in the third quarter, following a $4.5 billion, or 0.4 percent, increase in the second quarter.
- Imports of goods and services and income payments increased $42.0 billion, or 2.8 percent, following a $38.6 billion, or 2.7 percent, increase in the second quarter.
- The increase in exports of goods and services and income receipts was mainly due to goods and services exports but was partly offset by a decrease in primary income receipts.
- The increase in imports of goods and services and income payments was mostly due to goods imports and secondary income payments.
- Exports of goods increased $13.6 billion, or 2.6 percent.
- The increase was led by capital goods—mostly semiconductors; computer accessories, peripherals, and parts; and civilian aircraft.
- The next-largest increase was in nonmonetary gold.
- Imports of goods increased $23.7 billion, or 2.9 percent.
- The increase was led by capital goods—mostly computers and computer accessories, peripherals, and parts; and electric-generating machinery, electric apparatus, and parts.
- Consumer goods, particularly pharmaceuticals, and nonmonetary gold also contributed to the increase.
- Exports of services increased $7.7 billion, or 2.8 percent.
- The increase was led by increases in government goods and services; telecommunications, computer, and information services; “other business services”; and travel.
- Imports of services increased $6.0 billion, or 3.0 percent.
- The increase was widespread by category, led by charges for the use of intellectual property.
- Primary income receipts decreased $15.5 billion, or 4.3 percent.
- The decrease was largely led by direct investment earnings, which was partly offset by increases in portfolio investment earnings and “other investment interest.”
- Primary income payments decreased $3.8 billion, or 1.0 percent.
- The decrease was led by a decrease in direct investment earnings, followed by portfolio investment interest and portfolio investment earnings, with other investment interest partly offsetting the decreases.
- Secondary income payments increased $16.1 billion, or 16.8 percent, and was the second-largest contributor to imports and income payments in the third quarter.
- The increase was led by general government transfer payments, primarily international cooperation.
- Capital-transfer receipts were $1.6 billion, reflecting cross-border insurance claims related to Hurricane Helene.
- Capital-transfer payments increased $1.8 billion to $3.3 billion, reflecting an increase in infrastructure grants.
- Total transactions in financial assets were $201.9 billion in the third quarter, representing continued net U.S. acquisition of assets since the fourth quarter of 2022.
- Transactions in portfolio investment assets, led by equity and investment fund shares, was the leading contributor, followed by transactions in direct investment assets, mainly equity.
- Total transactions in liabilities were $716.7 billion in the third quarter, representing continued net U.S. incurrence of liabilities since the fourth quarter of 2022.
- Transactions in portfolio investment liabilities, led by equity and long-term debt securities, were the leading contributor, followed by transactions in direct investment liabilities, mostly equity.
- The third quarter of 2024 reflects the fourth-largest net inflows on record. Only the first quarter of 2020 and the first two quarters of 2007 had stronger net inflows of liabilities.
- The statistical discrepancy, shown as the difference between net financial transactions and the balance on the current and capital accounts, was −$181.0 billion in the third quarter, following a revised $58.2 billion discrepancy in the second quarter.2
- This is the highest quarterly discrepancy value in absolute terms on record.
- The statistical discrepancy can be scaled by the sum of total trade and income transactions to account for growth in nominal values over time.
- When scaled, the third-quarter discrepancy falls within historical bounds.3
- U.S. international transactions are presented in current dollars in accordance with international statistical presentation guidelines. For a comparison of current-dollar, or nominal, and inflation-adjusted, or real, measures of international transactions, see “SECTION 4 – FOREIGN TRANSACTIONS” of the National Income and Product Accounts.
- Timing, omissions, seasonality, and unsettled market conditions can contribute to a discrepancy. See Chapter 21 of U.S. International Economic Accounts: Concepts and Methods for more information.
- For more information on statistical discrepancies and how they change over time as revisions are incorporated, see Thomas Anderson, “Reliability of the International Accounts,” Survey of Current Business (December 17, 2024).