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US current account gap smallest since 4Q 2003

Published 03/18/2009, 08:35 AM
Updated 03/18/2009, 08:40 AM

WASHINGTON, March 18 (Reuters) - The U.S. current account for the fourth quarter narrowed sharply and by more than expected to $132.8 billion, the smallest since the fourth quarter of 2003, as U.S. imports plunged more than exports, a Commerce Department report showed on Wednesday.

The deficit shrank from an upwardly revised estimate of $181.3 billion for the third quarter. Wall Street analysts had expected the fourth quarter gap at $137 billion.

The fourth quarter deficit equaled 3.7 percent of gross domestic product, down from 5.0 percent in third quarter and the lowest since 3.4 percent in fourth quarter 2001.

(Reporting by Doug Palmer, Editing by Chizu Nomiyama)

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