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September 30, 2016UK CURRENT ACCOUNTS, Q2 2016 The UK posted a current account deficit of £28.7 billion (5.9% of GDP) in the 2nd quarter of 2016, up £1.7 billion from the £27.0 revised deficit posted in the 1st quarter 2016.
All three components of the current account were in deficit. Two component deficits increased and one component deficit narrowed.
- The trade deficit increased £2.7 billion to £12.7 billion due to a larger deficit in goods and a smaller surplus in services.
- The deficit on transfers increased £0.5 billion to £6.0 billion. Over period, transfer payments increased while transfer receipts were unchanged.
- The primary income deficit decreased £1.5 billion to £10.0 billion. The narrowing in the deficit on direct investment, was partially offset by a slight widening in the deficit on portfolio investment.
The increase of the current account deficit was due to a narrowing in the deficit on the primary income account being offset by the increase in the secondary income account (transfers) deficit and the increase in the trade account deficit.
Source:
Office for National Statistics