United Kingdom Current Account

The UK’s current account deficit narrowed to £12.1 billion (1.6% of GDP) in Q3 2025, down from a downwardly revised £21.2 billion in Q2 and well below expectations of a £21.3 billion shortfall. This marked the smallest deficit since Q4 2022, driven primarily by a sharp improvement in the primary income balance. The primary income deficit narrowed significantly to £1.9 billion from £8.4 billion, as credits rose by £5.5 billion while payments to foreign investors declined by £1.1 billion. Additionally, the goods trade deficit narrowed to £58.9 billion from £60.0 billion. Meanwhile, the services surplus increased to £52.8 billion from £51.3 billion, as exports grew by a larger amount than imports. Exports of services rose by £2.2 billion to £137.9 billion, driven primarily by transport and intellectual property services. On the other hand, the secondary income deficit widened slightly, rising by £0.1 billion to £4.1 billion (0.5% of GDP), up from £4.0 billion (0.5% of GDP) in Q2.