WASHINGTON, June 16: The US current account deficit rose to $192.6 billion in the first quarter of 2007. The commerce department, however, revised down its estimate for the fourth quarter of 2006 to 187.9 billion from 195.8 billion.

The latest figure was better than market forecasts of a deficit of $202 billion and suggested some easing of balance of payments -- the huge debt the United States owes the rest of the world.

In the January-March quarter, the report showed an increase in transfers of funds to foreigners and the trade deficit on goods increased a small amount.

The increases were partly offset by small rises in the surpluses on services and on income.

For goods and services, the US deficit was virtually unchanged from the prior quarter at $176.8 billion.

US goods exports rose to $270.1 billion from 266.5 billion while imports increased to 471 billion from 466.8 billion. Much of the rise was accounted for oil and related products, the report said.

The US economy posted a surplus of $24.1 billion in the first quarter, up from 23.4 billion in the fourth, helped by business, professional, and technical and financial services as well as insurance.

On the investment side, income on US-owned assets abroad increased to $176.8 billion from 172.3 billion while income payments on foreign-owned assets in the United States increased to 164.8 billion from 161 billion.

Meanwhile, transfers of money to foreigners rose sharply to $26.1 billion from 20.7 billion. Much of this was accounted for in US government grants, mostly to the Middle East, and in private remittances.—AFP