U.S. current account deficit widens 52.9% in Q2
CGTN

The U.S. current account deficit widened sharply in the second quarter, the highest level in nearly 12 years, as the COVID-19 pandemic weighed on U.S. exports, the Commerce Department reported Friday.

The current account deficit, which reflects the combined balances on trade in goods and services and income flows between the United States and other countries, widened by 52.9 percent to 170.5 billion U.S. dollars in the second quarter, the department said.

Economists polled by Reuters had forecast the current account gap increasing to 157.9 billion U.S. dollars in the second quarter.

The department said the widening deficit in the second quarter showed an expanded deficit on goods and reduced surpluses on primary income and services.

"In part from the impact of COVID-19, as many businesses were operating at limited capacity or ceased operations completely, and the movement of travelers across borders was restricted," said Bureau of Economic Analysis of the department.

The U.S. GDP plunged 31.7 percent during the April-June quarter as COVID-19 continued to ravage its economy.