FX.co ★ UK Q2 Current Account Gap Largest in 2 Years

In the second quarter of 2025, the United Kingdom's current account deficit expanded to £28.9 billion, equivalent to 3.8% of GDP. This marks an increase from the revised figure of £21.2 billion in the first quarter and significantly surpasses the anticipated £24.9 billion deficit. This represents the largest deficit since the second quarter of 2023, primarily attributed to a marked decline in the primary income balance. Specifically, the primary income deficit escalated by £16.8 billion to reach £9.1 billion. This change resulted from a reduction in credits alongside a rise in debits; receipts fell by £2.1 billion, and payments to foreign investors rose by £5.6 billion. Concurrently, the trade deficit in goods expanded to £56.6 billion, while the surplus in services increased to £53.8 billion. Conversely, the secondary income deficit saw a slight decrease, dropping by £0.7 billion to £4.2 billion or 0.6% of GDP, down from £4.9 billion or 0.7% of GDP in the previous quarter.