Fact Service (October 2015)

Issue 40

UK's current account deficit narrows


Britain’s trading position with the rest of the world improved in the second quarter of the year. 


The UK’s current account deficit was £16.8 billion in the April to June 2015 quarter, down from a revised deficit of £24.0 billion in the January to March 2015 quarter. The narrowing of the current account deficit was mainly due to a narrowing in the deficit on the trade account.


The trade deficit narrowed to £3.5 billion in the second quarter 2015, from £10.5 billion in the first quarter of the year. This was primarily due to a narrowing in the trade in goods deficit as exports rose by £4.5 billion and imports fell by £3.2 billion.


The trade in services surplus was £22.8 billion in second quarter, a decrease of £0.7 billion from the first. At £56.2 billion, exports were £0.2 billion higher than the first quarter. Imports increased by £0.8 billion to £33.3 billion.


A deficit of £26.9 billion was recorded with the EU in the second quarter, compared with a deficit of £27.6 billion in the first. 


The current account surplus with non-EU countries in first quarter of the year of £3.6 billion increased to £10.2 billion in the second.


www.ons.gov.uk/ons/dcp171778_418061.pdf


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