Balance of Payments
2009 Q3: UK current account deficit remains unchanged as a percentage of GDP
Current account
The current account recorded a deficit of £4.7 billion in the third quarter of 2009, up from a deficit of £4.4 billion in the previous quarter. The third quarter deficit is equivalent to -1.3 percent of GDP, which remained unchanged from the previous period.
The current account deficit increased as:
the income surplus declined by £1.5 billion to £6.7 billion
This increase was largely offset as:
the surplus on trade in services increased by £0.4 billion to £11.8 billion
the deficit on current transfers fell by £0.6 billion to £3.6 billion
Trade in Goods
Exports increased by £2.1 billion mainly due to increases in exports of semi-manufactured and finished manufactured goods. Imports increased by £2.0 billion, primarily due to an increase in imports of finished manufactured goods and oil.
Trade in Services
Exports fell by £0.6 billion to £38.6 billion, mainly due a decrease in royalties and licence fees. Imports fell by £1.0 billion to £26.8 billion, primarily as a result of a fall in other business services.
Income
UK earnings on investment abroad fell by £1.3 billion to £39.4 billion, due to lower earnings on other investment and portfolio investment abroad. Foreign earnings on investment in the UK increased by £0.2 billion to £32.5 billion - this was due to higher earnings on foreign direct investment in the UK, which were largely offset by a fall in other investment and portfolio investment in the UK.
Current Transfers
The deficit on current transfers fell by £0.6 billion in the third quarter to £3.6 billion. This was due to a fall in government payments to EU institutions.
Notes: The balance of payments data are presented in current price terms.
The current account includes transactions in goods, services income and current transfers.
Unless otherwise specified, current account figures are seasonally adjusted.
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UK Balance of Payments Press Release