
The IMF just put a spotlight on the U.S. economy, and the numbers speak for themselves. The U.S. current account deficit hit 1.13 trillion dollars. That’s the largest in more than a decade. And it’s not slowing down. The current account measures how much the country earns from trade and investments compared to how much it spends.
When that number swings too far into the negative, it means the country is relying too heavily on outside capital to function. The U.S. is importing more than it exports, spending more than it earns, and borrowing the difference. A deficit this size doesn’t just affect domestic policy.
It affects global markets. The U.S. dollar still anchors international trade. But when the foundation starts to crack, the entire system feels it. The IMF called this out because it’s not a short-term issue anymore. And without a plan to reverse it, trust in the system will fade fast.