United Kingdom Current Account

The UK’s current account deficit fell to £18.1 billion, equivalent to 2.5% of GDP, in Q3 2024, down from a downwardly revised £24.0 billion in Q2 and below forecasts of a £24.1 billion shortfall. The trade in goods deficit narrowed by £1.8 billion to £51.2 billion in Q3, as the value of imports fell by £4.3 billion to £140.1 billion, while exports dropped by £2.5 billion. The services surplus declined by £2.4 billion to £44.4 billion, with service exports shrinking by £1.8 billion, notably in other business services, while service imports posted a slight increase of £0.6 billion. The primary income account deficit increased to £10.5 billion, or 1.5% of GDP, as UK payments to foreign investors on their direct investments increased by £5.0 billion, while UK earnings rose by £2.7 billion. Meanwhile, the secondary income gap narrowed to £2.7 billion (0.4% of GDP) in Q3 from £3.8 billion in Q2.