US current-account deficit widens 44% in Q1 2025

The US current-account deficit surged 44.3% to $450.2 billion in Q1 2025, from $312 billion in Q4 2024, as imports outpaced exports.

Data from the Bureau of Economic Analysis issued today, June 24, revealed that this deficit now equals 6% of gross domestic product (GDP), compared to 4.2% in Q4 2024.

In detail, imports of goods and services rose by $134.3 billion to $1.69 trillion during the first three months of 2025. Meanwhile, exports dropped by $3.9 billion to $1.24 trillion over the same period.

Goods exports increased by $21.1 billion to $539 billion by the end of Q1 2025, driven by higher shipments of civilian aircraft and computer-related equipment.

The data also showed goods imports climbed by $158.2 billion for the same quarter, nearing $1 trillion.

By the end of the three-month period, service exports fell $4.4 billion to $293.2 billion, mainly due to lower royalties from intellectual property. During the same quarter, service imports also declined by $1.8 billion to $217.8 billion.