UK Deficit Rises to 17.5 Billion in Q3

UK deficit rose to £17.5 billion in Q3 from £16.8 billion recoded in previous quarter. According to Office of National Statistics report, the deficit in Q3 is equal to 3.7% of gross domestic product (GDP) at current market value, a decline from 3.8% in Q2 (April to une) 2015.

While the current account balance remain unchanged in Q 3 2015 there are equal and offsetting movements in the components.

The total trade deficit increased from £4.7 billion in Q2 to £8.7 billion in Q3 was as a result of £5.4 billion widening in the trade in goods deficit partially offset by a £1.4 billion widening in the trade in services surplus.

In the report, direct investment and portfolio investment payments decreased in Q3, which narrowed primary income deficit to £3.3 billion in Q3 (July to September) 2015, from £6.6 billion in Q2 (April to June) 2015.

The deficit on secondary income narrowed by £0.8 billion, from £6.2 billion in Q2 (April to June) 2015 to £5.5 billion in Q3 (July to September) 2015. This was primarily due to a decrease in payments.

The financial account recorded a net inflow of £26.9 billion during Q3 (July to September) 2015.

The international investment position recorded UK net liabilities of £348.8 billion at the end of Q3 (July to September) 2015.