U.S. International Transactions and Investment Position, 1st Quarter 2026 and Annual Update

The U.S. current-account deficit widened by $5.8 billion to $226.8 billion in the first quarter of 2026, the Bureau of Economic Analysis reported. The deficit now equals 2.9 percent of current-dollar gross domestic product, up from 2.8 percent in the fourth quarter of 2025 [1]. The $5.8 billion widening reflected a shift in the balance on primary income from a surplus in the fourth quarter to a deficit in the first quarter, partly offset by a reduced deficit on goods [1]. Exports of goods and services increased $50.0 billion to $1.38 trillion, while imports rose $55.8 billion to $1.61 trillion [1]. The BEA, a unit of the Commerce Department with roughly 500 employees and an annual budget of approximately $101 million, produces the official macroeconomic statistics underpinning the release [6]. Net financial-account transactions were $209.0 billion in the first quarter, reflecting net U.S. borrowing from foreign residents [1]. U.S. residents' foreign financial assets increased by $527.3 billion, and U.S. liabilities to foreign residents increased by $803.7 billion [1]. The U.S. net international investment position stood at –$21.27 trillion at the end of the quarter, with assets totaling $43.37 trillion and liabilities totaling $64.64 trillion [1]. U.S. assets increased $462.9 billion, while liabilities decreased $140.4 billion, a decline the BEA attributed partly to price changes of –$1.18 trillion that offset financial transactions [1]. The report incorporated annual updates drawing on revised source data from the U.S. Census Bureau and the Treasury Department, as well as recalculated seasonal and trading-day adjustments beginning with statistics for 1999 [1]. The Census Bureau, which produces foreign trade indicators alongside its decennial population count, provides the goods data that feed into the BEA's international accounts [7]. The widening deficit arrives during a period of global economic disruption. The 2026 Iran war, which began in late February, included Iran's closure of the Strait of Hormuz, disrupting oil and gas shipments and causing volatility in financial markets [2]. The United States is the world's largest importer and second-largest exporter, with the largest trading partners including Mexico, Canada, China, Japan, and Germany [5]. The U.S. and China together account for 44.2 percent of global nominal GDP, and their economic relationship has been marked by persistent disputes over trade policies [4]. The BEA's next release covering second-quarter 2026 international transactions is scheduled for September 24, 2026 [1].