Trading Places: Current Account Hits Record, Heads For Another

The broadest measure of the U.S. international economic position posted a record deficit in 2005 and, according to business professor Peter Morici, is headed for another record shortfall this year.

The current account deficit rose to $804.9 billion in 2005 from $668.1 billion in 2004, with a deepening trade deficit on goods accounting for most of the larger deficit, the U.S. Commerce Department reported on March 14.

"The current account deficit could easily top $1 trillion a year by the second half of 2006," predicts Morici, who teaches at the University of Marylands Smith School of Business in College Park.

TAGS: The Economy
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