–Q2 Current Account Deficit Stg20.767bn Vs Stg15.366bn Q1
LONDON (MNI) — The UK’s current account deficit ballooned in Q2 to
its highest level on record, driven by falling profits abroad, figures
released from National Statistics showed Thursday.
The latest figures, along with a massive revision to the previous
quarter, show a staggering deterioration in the current account. Not
only is it the highest on record in cash terms but it is now 5.4% of
GDP, also a record level.
The current account deficit rose to Stg20.767 billion in Q2 from a
heavily revised Stg15.366 billion shortfall in Q1, as the deficit on the
income account rose significantly.
The income accound deficit hit Stg5.15 billion in Q2, up from a
deficit of Stg1.918 billion in Q2. The deterioration was mainly due to a
large fall on earnings on direct investment abroad with profits reported
by foreign subsidiaries of UK private non-financial corporations
falling.
–London newsroom: 44 20 7634 1655; email: puglow@marketnews.com
[TOPICS: MABDS$,M$B$$$,MT$$$$]