account deficit widened slightly in the third quarter as an increase in exports was offset by foreign institutions paying less in fines and penalties to the U.S. government. The US Commerce Department reported Wednesday that the deficit in the current account—the broadest measure of international trade, measuring the flow of goods, services, investments, and international aid—rose 1.9 percent to $100.3 billion in the July-September period from $98.4 in the second quarter. The current-account deficit represented 2.3 percent of gross domestic product (GDP) in the third quarter, unchanged from the April-June period. The third-quarter increase happened despite a drop in the trade deficit for goods and services, reflecting cheaper oil prices and a stronger U.S. dollar. The deficit widened largely because fines collected by the U.S. government from foreign institutions fell 31 percent to $27.8 billion from $40.1 billion in the previous quarter. The current-account deficit had faced downward pressure recently because the dollar has increased in value relative to other currencies and oil prices have plunged by nearly 50 percent since June. In recent quarters, U.S. domestic energy production has boomed, reducing the country's crude imports.
