Economic Buzz: UK Current Account Deficit At 7.1% Of GDP

30 Jun 2022 , 02:36 PM

The underlying UK current account deficit excluding precious metals expanded to ?44.2 billion, or 7.1% of gross domestic product (GDP) in Quarter 1 (January to March) 2022, a change of ?32.8 billion from the previous quarter.The UK current account deficit, when trade in precious metals is included, expanded to ?51.7 billion, or 8.3% of GDP in Quarter 1 2022. In Quarter 1 2022, the total trade deficit, excluding precious metals, expanded to ?26.0 billion as imports of manufactured goods and fuels increased. The primary income account returned to a deficit position of ?12.4 billion, or 2.0% of GDP, after recording a surplus in Quarter 4 (Oct to Dec) 2021. Net financial flows increased in Quarter 1 2022 with a net inflow to the UK of ?29.6 billion, or 4.8% of GDP, these inflows are lower than the net borrowing from rest of the world implied by the current account deficit.Powered by Commodity Insights