FX.co ★ UK Trade Deficit Narrows Slightly in December 2025

The United Kingdom’s trade deficit narrowed modestly in December 2025, with the trade balance improving to -£22.72 billion from -£23.58 billion in November 2025. The latest figures, updated on 12 February 2026, indicate a small but notable easing in the country’s external shortfall at the end of the year.

While the trade balance remains firmly in negative territory, the month-on-month improvement suggests a marginal strengthening in net trade conditions. However, with the deficit still above £22 billion, external imbalances continue to pose a challenge for the UK’s broader economic outlook and may remain a focus for policymakers and investors monitoring the country’s trade dynamics into 2026.