UK current account deficit narrows in Q2

The UK current account deficit, excluding precious metals, narrowed to £11.3 billion ($15 billion), or 1.4% of the gross domestic product, in the second quarter of 2026.

This figure represented a drop of £3 billion from the £14.3 billion deficit recorded in the first quarter of the year.

The total trade deficit for goods and services fell to £4.2 billion, or 0.5% of the gross domestic product, down from £9.4 billion in the preceding three months.

The trade in goods deficit narrowed by £2.7 billion to reach £55.5 billion, while the trade in services surplus increased by £2.5 billion to hit £51.3 billion.

The country's primary income account deficit widened to £3.8 billion as debits increased more than credits during the second quarter.

The UK also recorded a net financial inflow of £29.7 billion in the second quarter of 2026.

The preliminary estimate of the country's net international investment liability position widened slightly to £196.8 billion on June 30, up from a revised £194.1 billion on March 31.