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The Current Account Deficit includes goods and services.

• lossolo 1y ago
  EU-US goods and services trade is balanced: the difference between EU exports to the US and US exports to the EU stood at €48 billion in 2023; the equivalent of just 3% of the total trade between the EU and the US. Total bilateral trade in goods between the EU and the US reached €851 billion in 2023. The EU exported €503 billion of goods to the US market, while importing €347 billion; this resulted in a goods trade surplus of €157 billion for the EU. Total bilateral trade in services between the EU and the US was worth €746 billion in 2023. The EU exported €319 billion of services to the US, while importing €427 billion from the US; this resulted in a services trade deficit of €109 billion for the EU. source: https://policy.trade.ec.europa.eu/eu-trade-relationships-country-and-region/countries-and-regions/united-states_en https://policy.trade.ec.europa.eu/eu-trade-relationships-cou...
  • corimaith 1y ago
    So they are running a deficit; Nonetheless, bilateral balances don't tell much without understanding the larger context of the total balances of each country and how proportionate they are relative to the global sum. The matter of fact is that nearly every major economy is running a surplus, it is really on the USA and some countries like UK that is holding up the deficit side. Whether you think this arrangement is good or not is a matter of debate, but many economists would agree it's not good or sustainable, nor should it be occurring in the first place. Surplus countries should have strengthening currencies, deficit countries weakening ones under natural conditions. This is not happening due to very specific policies that surplus nations have imposed, at the burden of deficit nations.