U.S. Current Account Deficit Discussion

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//U.S. is one of the leading nations in the world. Despite the fact, there are many problems faced by the U.S. economy. The current U.S. deficit is one of the major problems faced by the economy. But, the U.S. government and U.S. agencies have taken steps to tackle the issues related to the current deficit faced by the U.S. economy. In order to make a good understanding of US deficit and current account deficit, we will focus on defining the current US deficit and remedies taken to handle it//.

The current account balance or balance of payment in US for years 2008 to 2012 was a deficit i.e. US $ -474,970,000,000. The Current Account deficit in the United States was 106145 US $ Million in the starting of the year 2013. The Bureau of Economic Analysis is responsible for estimating the Current Account in the United States (I.M.F., 2004). From 1960 to 2013, the current account showed an average of -43449.53 USD Million, recorded the highest in February 1991 of 9957 USD Million and the lowest in August 2006 of -214397 USD Million. The Current Account is defined as the sum of the balance of trade i.e. exports minus imports of goods and services, net factor income which includes interest and dividends and at last, net transfer payments referring to the foreign support.

The shortfalls in balance of payment show that the largest economy of the world is dependent on the overseas investors for their funding. Growth in the U.S. remains quite decent and will gradually lead to increase the ...