FX.co ★ UK Q1 Current Account Deficit Exceeds Forecasts

The UK’s current account deficit narrowed to £22.1 billion (2.8% of GDP) in the first quarter of 2026, down from an upwardly revised £27.2 billion in the previous quarter, though it remained marginally above market expectations of a £21.5 billion shortfall.

The primary income deficit shrank to £3.9 billion, or 0.5% of GDP, from £11.9 billion in the fourth quarter. This reflected a £1.5 billion decline in payments to foreign investors, to £111.0 billion, alongside a £6.5 billion increase in receipts, to £107.1 billion.

The secondary income deficit also narrowed, to £3.5 billion from £3.8 billion in the previous period, remaining steady at 0.5% of GDP.

By contrast, the goods trade deficit widened to £66.6 billion from £64.5 billion in the prior quarter, while the services surplus edged down to £51.8 billion from £53.0 billion.