The U.S. current-account deficit narrowed significantly in the second quarter of 2025, decreasing by $188.5 billion to $251.3 billion, according to data released by the U.S. Bureau of Economic Analysis (BEA). The revised figure for the first quarter showed a deficit of $439.8 billion.
The current-account deficit accounted for 3.3 percent of gross domestic product (GDP) in the second quarter, down from 5.9 percent in the previous quarter.
According to BEA officials, "The $188.5 billion narrowing of the current-account deficit in the second quarter primarily reflected a reduced deficit on goods."
Exports of goods and services and income received from foreign residents rose by $28.6 billion to reach $1.27 trillion during this period, while imports and income paid decreased by $159.9 billion to total $1.53 trillion.
Goods exports increased by $11.3 billion to $550.2 billion, mainly due to higher shipments of nonmonetary gold; however, there was a decline in industrial supplies and materials that partly offset this gain. Imports of goods dropped by $184.5 billion to $820.2 billion, with notable decreases in nonmonetary gold, consumer goods, and industrial supplies and materials.
In terms of services trade, exports went up by $2.1 billion to reach $301.6 billion—driven largely by increases in financial services and charges for intellectual property use—while imports grew by $2.8 billion to hit $222.0 billion due mostly to more spending on business-related services as well as telecommunications and information technology services.
Receipts from primary income increased by $17.8 billion to total $376.1 billion; payments rose as well, up by $22.8 billion reaching a total of $383.8 billion—both changes attributed primarily to higher direct and portfolio investment earnings.
Secondary income receipts fell slightly ($2.6 billion) totaling at $45.9 billion because private transfers declined; payments also decreased ($1 billon), landing at a total outflow of $99.2 billion due mainly to fewer government transfers abroad.
On capital account transactions, receipts dropped sharply from earlier quarters following insurance recoveries related to wildfires in Southern California; capital-transfer receipts totaled just $16 million after an earlier influx linked with disaster claims from foreign insurers.
Net financial-account transactions stood at −$406.9 billion for the quarter—a reflection of net borrowing from foreign residents—as U.S.-based assets held overseas increased by over $220 billion while liabilities owed foreigners climbed even more sharply (by about $653 billion).
Looking ahead, BEA announced plans starting March 2026 for a combined quarterly release covering both international transactions and investment position statistics—aimed at providing faster access and broader context on U.S engagement with global markets through one consolidated news update instead of two separate releases issued days apart.