The United Kingdom’s current account deficit widened notably in the fourth quarter of 2025, reaching £18.4 billion, according to data updated on 31 March 2026. This marks a significant deterioration from the third quarter of 2025, when the deficit stood at £12.1 billion.
The larger shortfall in Q4 2025 points to increased net outflows from the UK economy compared with the previous quarter, highlighting growing imbalances in the country’s trade and financial transactions with the rest of the world. While the figures are reported in nominal terms, the jump of £6.3 billion in the deficit over a single quarter will likely draw attention from policymakers and investors monitoring the UK’s external position.
With the latest release confirming that the gap widened into the end of 2025, market participants may look more closely at how the current account trend interacts with broader macroeconomic conditions, including exchange rate dynamics, funding needs, and the sustainability of external financing going into 2026.
