23 Dec 2014
UK current account deficit soars to 6 percent of GDP
FXStreet (London) - The UK’s current account deficit saw a big jump in the third quarter of 2014, ballooning from GBP24.3bn in the second quarter, according to the Office for National Statistics. The increase pushes the current account deficit to 6 percent of GDP.
The biggest shortfall came from declines in foreign direct investment while payments to foreign direct investors rose.
The trade deficit narrowed to GBP9.0 billion in the third quarter, from GBP9.2 billion in the second quarter, mainly due to a larger surplus on trade in services. The surplus on trade in services equates to 5.1 percent of GDP which is the largest proportion since records began in 1955. This was partially offset by a widening in the trade in goods deficit.
The biggest shortfall came from declines in foreign direct investment while payments to foreign direct investors rose.
The trade deficit narrowed to GBP9.0 billion in the third quarter, from GBP9.2 billion in the second quarter, mainly due to a larger surplus on trade in services. The surplus on trade in services equates to 5.1 percent of GDP which is the largest proportion since records began in 1955. This was partially offset by a widening in the trade in goods deficit.