US current account deficit widens to 2.6% of GDP at the end of 2017

America's cumulative shortfall on its so-called current transactions with the rest of the world widened at the end of last year.

According to the Department of Commerce, America's current account deficit widened from $101.5bn for the third quarter of 2017 or 2.1% of gross domestic product to reach $128.2bn, or 2.6% of GDP, over the last three months of that same year.

Economists had projected -125.0bn of red ink.

The third quarter tally had also been revised slightly higher from a preliminary estimate of -$100.6bn.

A country's current account comprises its trade on goods and services with foreign nations, primary income receipts such as profits and dividends on investments overseas and secondary income receipts or outflows, such as international cooperation programmes.

The chief reason behind the worsening US current account deficit was a wider deficit in the country's trade in goods with the rest of the world.

During the fourth quarter, US goods imports jumped by $33bn, versus a $14.2bn increase in exports, with the bulk of the former accounted for by greater purchases of industrial supplies and materials, mostly petroleum and products and of consumer goods except food and automotive.

Although the US current account deficit remained well below its pre-financial crisis high of roughly 6% of GDP it was well towards the upper bound of its historical range since 1980.

On the other side of the US balance of payments, the country's financial account balance improved as net borrowing fell from the $121.8bn recorded in the thrid quarter to $29.8bn in the fourth.

To take note of, Wednesday's current account figures arrived amid a US push for more reciprocity from its international trade partners and did not yet reflect the better part of the impact from the White House's recently-approved tax cuts.