Published:
U.S. current-account deficit widened to $246.0bn in Q2 2026 as imports and income payments rose
BEA reports the U.S. current-account deficit widened by $33.4bn (15.7%) to $246.0bn in Q2 2026, with larger goods deficits largely offset by smaller deficits on primary income and secondary income. The net financial-account showed net borrowing from foreign residents, and the net international investment position deteriorated to -$22.42tn.
The U.S. current-account deficit widened in the second quarter of 2026, according to the BEA’s International Transactions and Investment Position release. The deficit increased by $33.4 billion, or 15.7%, to $246.0 billion, compared with a revised first-quarter deficit of $212.6 billion. Expressed relative to current-dollar GDP, the shortfall rose to 3.0% from 2.7% in the first quarter.
BEA attributes the widening primarily to an expanded deficit on goods, partially offset by smaller deficits on primary (earned) income and on secondary income (current transfers). On the trade side, exports of goods and services plus primary income receipts rose to $1.44 trillion, while imports of goods and services plus primary income payments increased more to $1.69 trillion. BEA also notes that capital-transfer receipts and payments were lower, with both declining in the quarter.
In the financial account, net international transactions were -$369.7 billion, reflecting net U.S. borrowing from foreign residents. BEA reports that over the quarter U.S. residents increased foreign financial assets and also increased liabilities to foreign residents, with overall liabilities rising more. The net international investment position ended the quarter at -$22.42 trillion, down from -$21.27 trillion at end of Q1 2026.
For FX context, watch whether the current-account shortfall continues to widen or stabilises in subsequent quarters, and how much of any change comes from goods versus income flows, as these can shift expectations for the scale and composition of future capital inflows.
Why this matters for FX
A wider current-account deficit and higher net borrowing from abroad can affect expectations for the future external financing needs of the U.S., influencing yields, risk premia and the attractiveness of USD assets. It also provides context for how trade and income flows are contributing to dollar supply/demand dynamics, particularly via capital flows and the broader terms-of-trade and investment-income channels.