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UK Current Account - NOT just the Balance of Trade!

Penny Brooks

17th March 2015

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Beware, in looking at the most recent current account data, of the changes that lie beneath the surface. For in spite of the fact that the trade deficit narrowed to £9.0 billion in Quarter 3 2014, from £9.2 billion in Quarter 2, the current account balance actually widened mainly due to a much greater increase in the deficit on the net investment income (primary income) account from £8.2 billion in Quarter 2 to £12.6 billion in Quarter 3.

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Penny Brooks

Formerly Head of Business and Economics and now Economics teacher, Business and Economics blogger and presenter for Tutor2u, and private tutor

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