The Department of Commerce reported on Tuesday that current account (C/A) gap in the U.S. widened by 4.2 percent q-o-q to $188.5 billion in the fourth quarter of 2020 from a revised $180.9 billion gap in the previous quarter (originally -$178.5 billion).

The deficit was 3.5 percentage of current-dollar GDP in the fourth quarter, up from 3.4 percent in the third quarter.

Economists had forecast a deficit of $189.9 billion.

According to the report, the $7.6 billion widening of the C/A deficit in the fourth quarter mainly reflected an expanded deficit on goods and a reduced surplus on services that were partly offset by a reduced deficit on secondary income.

Exports of goods rose $30.9 billion, to $387.5 billion, and imports of goods jumped $36.4 billion, to $640.5 billion. The gains in both exports and imports reflected increases in nearly all major categories.

Exports of services went up $3.8 billion, to $168.1 billion, while imports of services rose $6.9 billion, to $115.1 billion.

Receipts of secondary income declined $1.0 billion, to $36.0 billion, reflecting a decrease in private transfer, that was partly offset by an increase in general government transfers, primarily taxes on income and wealth. Payments of secondary income fell $2.4 billion, to $72.4 billion, reflecting decreases in private transfers and in general government transfers, mostly international cooperation.

Elsewhere, receipts of primary income grew $7.1 billion, to $248.4 billion, and payments of primary income increased $7.5 billion, to $200.5 billion. The advances in both receipts and payments mainly reflected increases in direct investment income, mostly earnings, and in portfolio investment income, mostly income on equity securities.