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U.S. Current-Account Deficit Widened to $226.8B in Q1 2026
The U.S. current-account deficit widened to $226.8 billion in Q1 2026, or 2.9% of GDP. A shift in primary income drove the $5.8 billion increase. The net investment position improved to negative $21.27 trillion.
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The U.S. current-account deficit hit $226.8 billion in the first quarter of 2026, widening by $5.8 billion from the prior quarter's revised $221.1 billion, the Bureau of Economic Analysis reported. The deficit now equals 2.9% of GDP, up from 2.8% in Q4 2025.
The widening came from a shift in the balance on primary income, which flipped from a surplus in Q4 to a deficit in Q1. That was partly offset by a narrower goods deficit. Exports of goods, services, and income receipts rose $50 billion to $1.38 trillion, driven by goods exports. Imports climbed $55.8 billion to $1.61 trillion, reflecting higher goods imports and primary income payments.
Capital-transfer receipts jumped $3.3 billion to $3.4 billion, while payments fell $0.9 billion to $2 billion.
On the financial side, net transactions showed $209 billion in U.S. borrowing from foreign residents. U.S. residents added $527.3 billion to their foreign financial assets, while liabilities to foreigners rose by $803.7 billion.