Facts About
Modern Manufacturing
The U.S. Current Account Deficit Shrank Substantially as a Share of World GDP
The buildup of the global current account imbalance in the 2000s, especially the large deficit in the United States and the significant surplus in China, is widely believed to have partially fueled the 2008 global financial crisis. In recent years, the imbalance has narrowed substantially, and as a share of world GDP, it declined from 5.7% in 2006 to 3.6% in 2013.
After a peak of $798 billion in 2006, the U.S. current account deficit decreased by more than half by 2013, thanks partly to strong export growth and weaker consumer demand for imports. Meanwhile, China’s current account surplus declined more than 60% from a high of $421 billion in 2006; global demand for its manufactured goods softened and its robust domestic economy stimulated fast growth in imports.