–Q3 Current Account Deficit Stg15.226bn Vs Stg7.386bn Q2
LONDON (MNI) — The UK’s current account deficit ballooned in the
third quarter to its highest level on record, figures released by
National Statistics revealed Thursday.
The data show the UK’s external position in a far worse state than
first thought, with a sharp upward revision to the shortfall in Q2 also.
The data will make disappointing reading for policymakers who have been
hoping for a rebalancing in the economy, with the deterioration overseas
hampering this.
The current account deficit widened to Stg15.226 billion from a
revised Stg7.386 billion in Q2, the highest quarterly shortfall since
records began in 1955 and more than double the market median of Stg6.3
billion.
As a percentage of GDP the deficit rose to 4% from 2% in Q2, the
highest since Q2 1990.
The goods trade shortfall widened to Stg9.9889 billion from Stg7.22
billion while the investment income surplus collapsed to Stg349 million
from Stg4.574 billion.
The fall in the income surplus was mainly due to a decline in
foreign earnings on direct investment abroad which fell to Stg19.483
billion from Stg22.263 billion.
National Statistics said this decline came from both the financial
and non-financial sectors.
–London newsroom: 44 20 7634 1655; email: drobinson@marketnews.com
[TOPICS: MABDS$,M$B$$$,MT$$$$]