UK Q2 Current Account Gap Smallest in 7 Quarters
2026-09-30 06:16
By
Chusnul Chotimah
1 min. read
The UK’s current account deficit narrowed to £19.9 billion (2.5% of GDP) in the second quarter of 2026 from a downwardly revised £21.1 billion in the previous quarter, better than market expectations for a £24.7 billion shortfall.
It was the smallest current account deficit since Q3 2025, as the secondary income deficit narrowed to £3.3 billion, equivalent to 0.4% of GDP, from £3.7 billion in the previous period.
Meanwhile, the goods trade deficit declined to £64.0 billion from £65.0 billion in the prior quarter, while the services surplus increased to £51.3 billion from £48.8 billion.
By contrast, the primary income deficit widened to £3.8 billion, or 0.5% of GDP, from £1.3 billion in the first quarter, as payments to foreign investors increased by £5.4 billion to £112.9 billion, while receipts climbed by £2.8 billion to £109.0 billion.