Current account deficit falls to lowest level since 2001

In general, economists view recessions at net-negative events, due to the disruptions created by unemployment and an economy performing well below its potential.

But recessions do tend to correct, if not eliminate, imbalances -- and one that's being corrected is the U.S. current account deficit. The current account is the broadest measure of U.S. trade with the rest of the world, and includes goods, services, and income transfers. The U.S. Commerce Department announced Wednesday that the current account deficit plunged in the first three months of 2009 to $101.5 billion, its lowest level since Q4 2001. Moreover, Q4 2001's low current account deficit also occurred during a recession.