The Department of Commerce reported on Thursday that current account (C/A) gap in the U.S. narrowed by 12.4% q-o-q to $109.8 billion in the fourth quarter of 2019 from an upwardly revised $125.4-billion gap in the previous quarter (originally -$124.1 billion). The deficit was 2.0 percent of current-dollar GDP in the fourth quarter, down from 2.3 percent in the third quarter.

Economists had forecast a deficit of $109 billion.

According to the report, the $15.6-billion narrowing of the C/A deficit in the fourth quarter mainly reflected a lower deficit on goods, which was partly offset by an increased deficit on secondary income.

Exports of goods and services to, and income received from, foreign residents fell $5.1 billion, to $936.1 billion, in the fourth quarter. At the same time, imports of goods and services from, and income paid to, foreign residents dropped $20.7 billion, to $1.05 trillion.

Receipts of primary income declined $2.8 billion, to $278.0 billion, and payments of primary income fell $4.2 billion, to $210.7 billion. The decreases in both receipts and payments mainly reflected drops in other investment income, mostly interest on loans and deposits.

Meanwhile, receipts of secondary income fell $2.5 billion, to $34.4 billion, mainly reflecting a decline in private sector fines and penalties, a component of private transfer receipts. Payments of secondary income rose $1.9 billion, to $71.7 billion, mainly reflecting an advance in U.S. government grants.