In 2025, the US current-account deficit narrowed by $69.3 billion to $1.12 trillion, or 3.6% of GDP, driven by higher exports of goods, services, and income receipts, which rose $276.2 billion, outpacing the $206.9 billion increase in imports and income payments, reports the US Bureau of Economic Analysis.
In the fourth quarter alone, the deficit fell 20.2% to $190.7 billion, reflecting a shift from a primary income deficit to a surplus and a reduced goods deficit.
Net financial-account transactions showed $1.21 trillion in US borrowing from foreign residents, while US assets rose $7.24 trillion to $42.96 trillion and liabilities grew $8.24 trillion to $70.49 trillion, leaving a net international investment position of –$27.54 trillion at year-end. The BEA writes:
The U.S. current-account deficit resulting from international economic transactions narrowed by $48.4 billion, or 20.2 percent, to $190.7 billion in the fourth quarter of 2025, according to statistics released today by the U.S. Bureau of Economic Analysis. The revised third-quarter deficit was $239.1 billion.
The fourth-quarter deficit was 2.4 percent of current-dollar gross domestic product (GDP), down from 3.1 percent in the third quarter.
The $48.4 billion narrowing of the current-account deficit in the fourth quarter reflected a shift in the balance on primary income from a deficit in the third quarter to a surplus in the fourth quarter and a reduced deficit on goods
Exports of goods and services to, and income received from, foreign residents increased $32.4 billion to $1.33 trillion in the fourth quarter, reflecting increases in goods exports and in primary (earned) income receipts.
Imports of goods and services from, and income paid to, foreign residents decreased $16.0 billion to $1.52 trillion, reflecting decreases in primary (earned) income payments and in goods imports.
Capital-transfer receipts decreased $80 million to $101 million in the fourth quarter. Capital-transfer payments increased $1.8 billion to $3.0 billion.
Net financial-account transactions were –$135.9 billion in the fourth quarter, reflecting net U.S. borrowing from foreign residents.1 Fourth-quarter transactions increased U.S. residents’ foreign financial assets by $405.0 billion and increased U.S. liabilities to foreign residents by $532.0 billion.
The U.S. net international investment position, the difference between U.S. residents’ foreign financial assets and liabilities, was –$27.54 trillion at the end of the fourth quarter of 2025. Assets totaled $42.96 trillion, and liabilities totaled $70.49 trillion. At the end of the third quarter of 2025, the net investment position was –$27.55 trillion (revised).
U.S. assets increased $1.62 trillion in the fourth quarter, reflecting increases in all major investment categories, particularly in direct investment and in portfolio investment. The overall increase was driven by price changes of $1.10 trillion and financial transactions of $405.0 billion.
U.S. liabilities increased $1.61 trillion in the fourth quarter, reflecting increases in all major investment categories, particularly in portfolio investment. The overall increase was driven by price changes of $631.6 billion and financial transactions of $532.0 billion.
Updates for the Third Quarter of 2025
International Transactions Accounts Balances
Preliminary estimates
Revised estimates
Billions of dollars, seasonally adjusted1
Current-account balance
–226.4
–239.1
Goods balance
–267.4
–265.9
Services balance
89.2
86.5
Primary income balance
5.2
–2.5
Secondary income balance
–53.5
–57.2
Net financial-account transactions
– 409.9
–376.4
International Investment Position Aggregates
Preliminary estimates
Revised estimates
Trillions of dollars, not seasonally adjusted
U.S. net international investment position
–27.61
–27.55
U.S. assets
41.27
41.34
U.S. liabilities
68.89
68.89
1. In addition to revisions to source data for the third quarter of 2025, seasonally adjusted statistics for the first, second, and third quarters of 2025 were revised to force the sum of seasonally adjusted quarters to equal annual totals. This forcing procedure was also applied to the fourth quarter of 2025.
U.S. Bureau of Economic Analysis
Year 2025
The U.S. current-account deficit narrowed by $69.3 billion, or 5.8 percent, to $1.12 trillion in 2025. The deficit was 3.6 percent of current-dollar GDP, down from 4.0 percent in 2024.
Exports of goods and services to, and income received from, foreign residents increased $276.2 billion to $5.15 trillion in 2025. Imports of goods and services from, and income paid to, foreign residents increased $206.9 billion to $6.26 trillion.
Capital-transfer receipts decreased $3.6 billion to $9.2 billion in 2025. Capital-transfer payments decreased $1.0 billion to $8.2 billion.
Net financial-account transactions were –$1.21 trillion in 2025, reflecting net U.S. borrowing from foreign residents. Transactions in 2025 increased U.S. residents’ foreign financial assets by $1.7 trillion and increased U.S. liabilities to foreign residents by $2.90 trillion.
The U.S. net international investment position was –$27.54 trillion at the end of 2025, compared to –$26.54 trillion at the end of 2024. U.S. assets increased $7.24 trillion to a total of $42.96 trillion at the end of 2025, and U.S. liabilities increased $8.24 trillion to a total of $70.49 trillion.
