The current account gap in the United Kingdom widened to GBP 20.3 billion in the second quarter of 2018 from a downwardly revised GBP 15.7 billion in the previous quarter and compared to market expectations of a GBP 19.4 billion deficit. It was the largest current account gap since the second quarter of 2017. The goods deficit increased by GBP 2.7 billion to GBP 34.7 billion, the largest increase since the third quarter of 2016, driven by movements in erratics, which include aircraft and non-monetary gold, and an increase in the price of oil. Also, the services surplus narrowed by GBP 0.2 billion to GBP 28.6 billion and the primary income deficit rose by GBP 2.1 billion to GBP 8.8 billion, mainly due to payments on investment income rising more than receipts. Current Account in the United Kingdom averaged -4475.15 GBP Million from 1946 until 2018, reaching an all time high of 2654 GBP Million in the first quarter of 1981 and a record low of -32163 GBP Million in the fourth quarter of 2015.
Current Account in the United Kingdom is expected to be -26700.00 GBP Million by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Current Account in the United Kingdom to stand at -17700.00 in 12 months time. In the long-term, the United Kingdom Current Account is projected to trend around -22800.00 GBP Million in 2020, according to our econometric models.