UK Q2 Current Account Gap Largest in 2 Years

2025-09-30 06:19 By Chusnul Chotimah 1 min. read

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.



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The UK’s current account deficit narrowed to £12.1 billion (1.6% of GDP) in Q3 2025, down from a downwardly revised £21.2 billion in Q2 and well below expectations of a £21.3 billion shortfall. This marked the smallest deficit since Q4 2022, driven primarily by a sharp improvement in the primary income balance. The primary income deficit narrowed significantly to £1.9 billion from £8.4 billion, as credits rose by £5.5 billion while payments to foreign investors declined by £1.1 billion. Additionally, the goods trade deficit narrowed to £58.9 billion from £60.0 billion. Meanwhile, the services surplus increased to £52.8 billion from £51.3 billion, as exports grew by a larger amount than imports. Exports of services rose by £2.2 billion to £137.9 billion, driven primarily by transport and intellectual property services. On the other hand, the secondary income deficit widened slightly, rising by £0.1 billion to £4.1 billion (0.5% of GDP), up from £4.0 billion (0.5% of GDP) in Q2.
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UK Q2 Current Account Gap Largest in 2 Years
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.
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