MercoPress. South Atlantic News Agency

US 2004 current account deficit: 665,9 billion

United States reported a new record current account deficit in 2004, totalling 665,9 billion US dollars compared to the 530,7 billion of 2003.

The last quarter gap was far larger than expected by most Wall Street experts, reaching 181,9 billion US dollars.

US Department of Commerce said the 2004 current account deficit was 25% higher than the previous year.

Trade deficit in the fourth quarter was 183,5 billion compared to 167 billion in 3Q.

Concerns over the US "double" deficit, federal budget (ballooned by the Iraq war and lower taxes), and current account, which includes trade and investments, has contributed to the steady decline during the last three years of the US dollar against the Euro and the main world currencies.

Economists have warned about the potential drastic consequences of a persistent depreciation of the US dollar if holders of US assets no longer feel attracted by them.