USD28 August 2026 at 10:20
BEA: U.S. current-account deficit narrowed in 3Q 2025 to $226.4bn
Mixed signalsHigh
BEA says the U.S. current-account deficit narrowed by $22.8 billion (down 9.2%) to $226.4 billion in the third quarter of 2025. The previous quarter’s deficit was revised to $249.2 billion, and the deficit fell to 2.9% of current-dollar GDP from 3.3%.
Why this matters for FX
The current account is a core read-through for the USD’s external demand/supply balance. A narrowing deficit—especially when expressed as a share of GDP—can influence perceptions of long-run external sustainability and the extent of net external financing required.
External balancesTrade in goods/services and income flowsUSD funding needs