The Current Account is defined as the sum of the balance of trade (goods and services exports less imports), net income from abroad and net current transfers. It is called the current account because goods and services are generally consumed in the current period.
Current Account Balance
The BEA’s International Transaction Report shows the U.S. current-account deficit decreased to $100.6 billion (preliminary) in the third quarter of 2017 from $124.4 billion (revised) in the second quarter of 2017,
Current Account Transactions
Hurricane Impact
The deficit decreased by $23.8 billion in the third quarter. Thank the hurricanes.
“Capital transfer receipts were $24.9 billion in the third quarter. The transactions reflected receipts from foreign insurance companies for losses resulting from hurricanes Harvey, Irma, and Maria.”
Clearly, this is a one-time benefit.
Mike “Mish” Shedlock
While the insurance payouts may be “nice” when viewed as a one-off, hurricane related windfall; the fact that the industry is regulated, sued, taxed and harassed sufficiently to be conducted almost entirely from offshore, ought to be a much bigger concern to The Donald and the rest of the clowns, than most of the other inanities they see fit to busy themselves with.
Foreign insurance companies paid $24.9 billion in hurricane damages. Cha-ching. The best part of the report.