The changes in the current account for major economies as of 06/05/2023

The current account for major economies in March 2023 shows a mixed bag of results. Some countries, such as Singapore, Saudi Arabia, and Russia, have seen their current accounts improve, while others, such as the United States, the United Kingdom, and Turkey, have seen them deteriorate.

The average current account for major economies is 1.91% of GDP, down from 2.70% in December 2022. This decline is due to a number of factors, including the war in Ukraine, rising commodity prices, and the Federal Reserve's interest rate hikes.

Despite the overall decline, there are some bright spots. Singapore's current account surged to 19.3% of GDP in March, up from 18.0% in December. This was driven by strong exports and tourism receipts. Saudi Arabia's current account also improved, rising to 13.8% of GDP from 5.1% in December. This was due to higher oil prices and increased government spending.

On the other hand, the United States' current account deficit widened to 3.7% of GDP in March, from 3.6% in December. This was due to a decline in exports and an increase in imports. The United Kingdom's current account deficit also widened, to 5.6% of GDP from 1.5% in December. This was due to a decline in exports and an increase in imports, as well as higher energy prices.

Overall, the current account for major economies is in a mixed bag. Some countries have seen their current accounts improve, while others have seen them deteriorate. The average current account for major economies is down from December 2022, but there are some bright spots, such as Singapore and Saudi Arabia.

+----+----------------+-----------+------------+-------------+--------+--------------+
|    | Country        |   Current |   Previous | Reference   | Unit   |   Difference |
|----+----------------+-----------+------------+-------------+--------+--------------|
|  0 | Singapore      |  19.3     |   18       | Dec/22      | %      |     1.3      |
|  1 | Saudi Arabia   |  13.8     |    5.1     | Dec/22      | %      |     8.7      |
|  2 | Russia         |  10.3     |    6.8     | Dec/22      | %      |     3.5      |
|  3 | Switzerland    |   9.8     |    7.9     | Dec/22      | %      |     1.9      |
|  4 | Netherlands    |   4.4     |    7.3     | Dec/22      | %      |    -2.9      |
|  5 | Germany        |   4.2     |    7.7     | Dec/22      | %      |    -3.5      |
|  6 | South Korea    |   3.2     |    4.9     | Dec/22      | %      |    -1.7      |
|  7 | Australia      |   2.3     |    0.1     | Dec/22      | %      |     2.2      |
|  8 | China          |   2.2     |    1.8     | Dec/22      | %      |     0.4      |
|  9 | Japan          |   1.9     |    3.9     | Dec/22      | %      |    -2        |
| 10 | Indonesia      |   1       |    0.3     | Dec/22      | %      |     0.7      |
| 11 | Spain          |   0.6     |    1       | Dec/22      | %      |    -0.4      |
| 12 | Canada         |  -0.4     |   -0.3     | Dec/22      | %      |    -0.1      |
| 13 | South Africa   |  -0.5     |    3.7     | Dec/22      | %      |    -4.2      |
| 14 | Argentina      |  -0.7     |    1.4     | Dec/22      | %      |    -2.1      |
| 15 | Mexico         |  -0.9     |   -0.6     | Dec/22      | %      |    -0.3      |
| 16 | Euro Area      |  -1       |    2.3     | Dec/22      | %      |    -3.3      |
| 17 | Italy          |  -1.3     |    3.1     | Dec/22      | %      |    -4.4      |
| 18 | France         |  -2.1     |    0.4     | Dec/22      | %      |    -2.5      |
| 19 | India          |  -2.6     |   -1.2     | Dec/22      | %      |    -1.4      |
| 20 | Brazil         |  -2.92    |   -2.81    | Dec/22      | %      |    -0.11     |
| 21 | United States  |  -3.7     |   -3.6     | Dec/22      | %      |    -0.1      |
| 22 | Turkey         |  -5.4     |   -0.9     | Dec/22      | %      |    -4.5      |
| 23 | United Kingdom |  -5.6     |   -1.5     | Dec/22      | %      |    -4.1      |
| 24 | Average        |   1.91167 |    2.69958 |             |        |    -0.787917 |
+----+----------------+-----------+------------+-------------+--------+--------------+

The following charts illustrate the changes in the current account for major economies. It is evident that a majority of countries have experienced a decrease in their current account balances. Notably, many advanced economies have seen a deterioration in their current accounts. However, there are exceptions to this trend. Singapore, Saudi Arabia, Russia, and Australia, which are primarily commodity-exporting nations (excluding Singapore), have witnessed an increase in their current account balances.