The current-account deficit narrowed by 9% to $107.5 billion as a result of a slowdown in imports in the third quarter.
Demand is cooling across the globe.
At the same time, growth is slowing in Europe and Asia, indicating that it will become more difficult to continue to shrink the trade deficit.
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Growth in emerging markets would boost export performance and help the economy continue to grow.
Faster growth in the US economy would boost imports. The trade deficit represented 2.7% of the US gross domestic product (GDP) in the third quarter.
That’s the smallest percentage of GDP in three years, down from 3% in the previous quarter.
US income on overseas assets in the third quarter was basically flat at $184.4 billion compared to $184 billion in the second quarter. Foreign earnings on US assets including wages and compensation decreased by $1.65 billion to $133.6 billion.
They totaled $33.8 billion in the third quarter compared to $32.7 billion in the second quarter.