30.09.202606:16:37UTC+00UK Current Account Gap Smallest in 7 Quarters

The UK’s current account deficit narrowed to £19.9 billion (2.5% of GDP) in the second quarter of 2026, down from a downwardly revised £21.1 billion in the previous quarter and better than market expectations of a £24.7 billion shortfall. This marked the smallest current account deficit since Q3 2025. The improvement was driven in part by a reduction in the secondary income deficit, which fell to £3.3 billion (0.4% of GDP) from £3.7 billion.

In the trade balance, the goods deficit eased to £64.0 billion from £65.0 billion, while the services surplus widened to £51.3 billion from £48.8 billion. Offsetting these gains, the primary income deficit increased to £3.8 billion (0.5% of GDP), up from £1.3 billion in the first quarter. This deterioration reflected a £5.4 billion rise in payments to foreign investors, to £112.9 billion, which outpaced a £2.8 billion increase in receipts from abroad, to £109.0 billion.