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Economy

U.S. Import Debt Narrows in 2016's Second Quarter while National Income Rises

By September 18, 2016 at 8:54 pm
U.S. Import Debt Narrows in 2016's Second Quarter while National Income Rises (Photo : Getty Images)

Reuters reported that the second-quarter current account deficit of the US represented 2.6 percent of gross domestic product which was down from 2.9 percent in the first three months of 2016.

America's current account deficit, the amount of money it borrows and spends through imports as opposed to the money it saves from exporting goods and services, has dramatically declined from a record high of 6.3 percent of GDP in the fourth quarter of 2005.

The current deficit has narrowed due to America's rising domestic oil production and lower international oil prices which have dampened the country's import costs.

Reuters said that that in the second quarter, the surplus on primary income - which includes dividends - greatly increased to $42.9 billion from $34.0 billion. The deficit on secondary income, worker remittances and grants, fell $3.1 billion to $37.6 billion.

Goods exports rose $6.1 billion to $360.2 billion.

Obama has reinforced that the country's past fiscal, monetary and trade decisions have brought the country back from the brink of near economic extinction caused by the banking sector's collapse in 2008's great economic recession.

Political and economic pundits of all colors  have speculated that America's demise was inevitable in the aftermath of 2008's massive economic fallout. However, Obama's two term presidency has shown that America will not go quietly into the night without a fight.

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