United Kingdom Current Account

The UK’s current account deficit widened to £28.9 billion (3.8% of GDP) in Q2 2025, up from a downwardly revised £21.2 billion in Q1 and well above expectations of a £24.9 billion shortfall. This was the largest deficit since Q2 2023, driven primarily by a sharp deterioration in the primary income balance. The primary income deficit widened to £16.8 billion from £9.1 billion, as credits decreased while debits increased—receipts declined by £2.1 billion, while payments to foreign investors rose by £5.6 billion. Additionally, the goods trade deficit widened to £61.7 billion from £55.5 billion, as imports fell by £0.7 billion while exports declined by £6.5 billion, mainly due to lower shipments of semi-manufactured goods, finished goods, and oil. Meanwhile, the services surplus increased to £53.8 billion from £48.3 billion. On the other hand, the secondary income deficit fell slightly, decreasing by £0.7 billion to £4.2 billion (0.6% of GDP), down from £4.9 billion (0.7% of GDP) in Q1.