WASHINGTON (AP) — The current account trade deficit widened in the fourth quarter, reflecting an improving economy, but the imbalance for all of 2009 fell to the lowest point in eight years. Economists believe the deficit will increase in 2010 but not return to the record heights seen before the recession.
The Commerce Department says the deficit in the October-December quarter jumped 12.9 percent to $115.6 billion, as imports of oil, autos and other foreign products outpaced the gains in U.S. exports.
For the year, the deficit in the current account plunged by 40.5 percent to $419.9 billion, the smallest imbalance since 2001. Last year's deficit represented 2.9 percent of the total U.S. economy, the smallest percentage in 11 years.
