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. It was the largest deficit since Q2 2023, driven primarily by a sharp deterioration in the primary income balance. The primary income deficit widened by £16.8 billion to £9.1 billion, as credits decreased while debits increased—receipts declined by £2.1 billion, while payments to foreign investors increased by £5.6 billion. Meanwhile, the goods trade deficit widened to £56.6 billion, while the services surplus increased to £53.8 billion. On the other hand, the secondary income deficit fell slightly, falling by £0.7 billion to £4.2 billion (0.6% of GDP), down from £4.9 billion (0.7% of GDP) in Q1.