All articles tagged with #current account deficit
In Q2 2025, the US current-account deficit narrowed significantly to $251.3 billion, mainly due to a decrease in imports and an increase in exports of goods and services, reflecting a positive shift in trade balance and increased foreign investment in US assets.
The number of people filing for state unemployment benefits for the first time held steady at a 20-month high last week, while the ranks of all those continuing to receive benefits beyond the first week fell. This may be an early indication of a softening labor market in the face of the Federal Reserve's aggressive credit tightening. The US current account deficit widened modestly in the first three months of 2023, snapping three quarters of narrowing, according to the Commerce Department.
China may not be fully supportive of making the yuan the reserve currency of choice, as Beijing is unwilling to open its capital accounts or to run a deficit. China is likely to pursue its sphere of currency influence among countries it trades with actively, such as Asia, breaking up US dollar dominance in parts of the world instead. The US dollar's position and clout as a reserve currency comes at a cost, a current account deficit for America, which China cannot afford to run.