WASHINGTON (MarketWatch) The U.S. current-account deficit, a measure of the nation’s debt to other countries, shrank 5.6% in the 2022 fourth quarter. The current-account deficit narrowed to $206.8 billion from a revised $219 billion in the 2022 third quarter. The smaller gap reflected a decline in the “secondary” income deficit and a bigger surplus in services such as tourism. The current account reveals if a country is a net lender or debtor. The current account deficit was equal to 3.2% of GDP in the fourth quarter, down from 3.4% in the prior quarter. The current-account deficit as a share of GDP peaked in 2005 at 6.3%.
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