The US current account deficit widened 2.6% to $226.8 billion in the first quarter of 2026, the Commerce Department reported, exceeding economists’ forecasts of about $215 billion [1, 2, 3, 4]. The deficit reached 2.9% of GDP, up from 2.8% in the previous quarter [1, 2, 3].
The increase was mainly due to the primary income balance shifting from a $3.431 billion surplus in the fourth quarter of 2025 to a $13.3 billion deficit in Q1 2026 [1, 2, 3]. Primary income receipts fell to $396.1 billion from $402.2 billion, while payments rose to a record $409.1 billion from $398.8 billion, widening the income gap [1].
Meanwhile, the US trade deficit narrowed to $165.8 billion in Q1 from $177.3 billion in Q4 2025, partially offsetting the widening income deficit [1]. US exports of goods and services increased by $50 billion to $1.38 trillion, and imports grew by $55.8 billion to $1.61 trillion [3].
The previous quarter’s deficit was revised upward sharply to $221.1 billion from earlier estimates near $190.7 billion, highlighting a larger deficit trend [1, 2, 3, 4]. Economists had predicted a lower deficit before the release, with Reuters surveys showing a median forecast of $208.9 billion and a separate estimate of $215 billion [1, 4].
At the end of March 2026, the US net international investment position showed a slight improvement to negative $21.27 trillion, from a revised negative $21.87 trillion at the end of 2025 [1, 3].
The next update on the US current account balance is expected with second quarter 2026 data later this year.
