The Department of Commerce reported on Monday that current account (C/A) gap in the U.S. widened by 0.5 percent q-o-q to $190.3 billion in the second quarter of 2021 from a revised $189.4 billion gap in the previous quarter (originally -$195.7 billion). This was the highest C/A deficit since the second quarter of 2007.

The deficit was 3.3 percentage of current-dollar GDP in the second quarter, down from 3.4 percent in the first quarter.

Economists had forecast a deficit of $191.0 billion.

According to the report, the $0.9-billion widening of the C/A deficit in the second quarter mainly reflected reduced surpluses on services and on primary income that were mostly offset by a lower deficit on secondary income.

Exports of goods rose $28.3 billion to $436.6 billion, while imports of goods increased $29.0 billion. The gains in both exports and imports primarily reflected gains in industrial supplies and materials, mainly petroleum and products.

Exports of services went up $7.6 billion to $189.1 billion, while imports of services rose $9.1 billion to $127.8 billion.

Receipts of primary income grew $7.7 billion to $270.6 billion and payments of primary income increased $8.8 billion to $221.5 billion. The advances in both receipts and payments mainly reflected increases in direct investment income, primarily earnings.

Elsewhere, receipts of secondary income fell $0.9 billion to $41.6 billion, mainly reflecting a decline in general government transfers, mostly public sector fines and penalties. Payments of secondary income went down $3.5 billion to $72.6 billion, mainly reflecting a decrease in general government transfers, mostly international cooperation.