FX.co ★ UK Q3 Current Account Gap Smallest in One Year

The United Kingdom's current account deficit reduced to £12.1 billion, equivalent to 1.6% of GDP, in the third quarter of 2025. This is a significant improvement from the revised figure of £21.2 billion in the previous quarter and considerably lower than the anticipated £21.3 billion deficit. This represents the smallest deficit recorded since the third quarter of 2024. The notable improvement was largely due to a substantial enhancement in the primary income balance. The primary income deficit shrank markedly to £1.9 billion, having benefited from an increase in credits by £5.5 billion alongside a £1.1 billion reduction in payments to foreign investors. Additionally, the trade deficit in goods decreased to £58.9 billion from the previous £60.0 billion. The services sector also saw a surplus rise to £52.8 billion from £51.3 billion. Conversely, the secondary income deficit experienced a marginal increase, rising by £0.1 billion to £4.1 billion, which translates to 0.6% of GDP, up from 0.5% in the second quarter.