$65.7b in December

$198.2 b for the fourth quarter

$725.8 b for the year.

Big numbers, all.

The roughly $200b fourth quarter trade deficit was about as big as the $200 b quarterly current account deficit in each of the first three quarters.    The fourth quarter's current account deficit obviously will be a bit bigger.   I expect a q4 current account deficit of between $223b and $228b (I think transfers and income payments will add at least $25 b to the total) - or a q4 current account deficit of above 7% of US GDP.

For 2005, the current account deficit should come in between $815b and $820b (6.5-6.6% of GDP).  A $225 billion quarterly current account deficit - sustained over an entire year - works out to $900b.   What's more, the US is entering into 2006 with a bit of momentum.  Of the bad kind.

The average price per barrel price of US crude oil imports was $46.8 a barrel in 2005.  It will be a bit higher in 2006.

And non-oil import growth (goods only) surged to 11% (y/y) in December. For most of 2005, non-oil goods imports were stalled at around $117b a month.  They hit $125.7b in December.   Q4 2005/ Q4 2004 non-oil goods imports are up, by my calculations, 8.8%.  That's faster than nominal GDP.  

The resumption in rapid growth of non-oil imports in the fourth quarter is, to my mind, the real story here.