The US Commerce Department reported Thursday on narrowed gap of the US current account deficit in 4 quarter of 2012. The deficit decreased by 2.8% of gross domestic product to fall to 110.4 bln USD in 4 quarter. The deficit in 3 quarter was revised up to 112.4 bln USD from 107.5 bln prior.
The deficit in 4 quarter of 2012 is the lowest since the 3 quarter of 2011.
As a percentage of GDP, the deficit is just above the record low of 2.5% set in 2 quarter of 2009.
The deficit is still down sharply from the peak of 6.5% of GDP in 4 quarter of 2005.
Net financial inflows dropped to 58.4 bln in 4 quarter from 68.3 bln UDS prior. For the year, the current account deficit increased to 475 bln USD, or 3% of GDP, from 465.9 bln USD in 2011. This is the largest annual current account deficit since 2008. The U.S. has not had an annual current account surplus since 1991