Issues in International Political Economy - Risks of U.S. Macroeconomic Policy - April 2005, Number 64

April 15, 2005

The U.S. current account deficit is projected to reach 5.7 percent of gross domestic product this year. This means that the United States is laying out about $700 billion more on foreign goods, services, and net interest payments than it is currently earning from its transactions with the rest of the world.