U.S. Increasingly Large Driver of Global Trade Deficits, IMF Reports

Fiscal policy will widen deficits in coming years, says annual assessment of global imbalances

The U.S. remained by far the largest driver of global current-account imbalances in 2017, running the world’s largest deficit and adopting policies—mainly a shift toward much larger fiscal deficits—that are likely to increase its imbalances in coming years.

The U.S. ran a $466 billion current-account deficit, meaning the nation imported far more than it exported. The U.S. has become an increasingly large driver of global deficits, accounting for 43% of all global deficits last year, up from 39% in 2016, according to the International...