US current account deficit hits lowest level since early 2021
Good news for the US economy: the current account deficit (which measures net flows of goods, services and primary income between the US and the rest of the world) just dropped to $190.7 billion in the fourth quarter of 2025.
That's a big improvement from $239.1 billion in the previous quarter, marking the lowest level since early 2021, according to new government data.
Trade balance and primary income surplus drive the change
A record surge in goods exports (up to $563.6 billion) and a dip in imports helped shrink the gap, bringing the deficit down to just 2.4% of GDP (from 3.1%).
Plus, for once, income from abroad actually outweighed what we paid out, flipping a small deficit into a $23.9 billion surplus for primary income for the fourth quarter of 2025.
Trade policies and tariffs also played their part in shifting these numbers around.