–Q2 Current Account Deficit Stg2.022bn Vs Stg4.12bn Q1
–Q2 Current Account Deficit/GDP Ratio -0.5%; highest since 1998
LONDON (MNI) — The UK’s current account deficit narrowed sharply
in the second quarter as earnings on portfolio investments abroad rose
sharply, figures released by National Statistics showed Tuesday.
The current account shortfall narrowed to Stg2.022 billion in Q2
from Stg4.12 billion in Q1. This was the lowest since Q1 2008 and way
below the median for a Stg8.5 billion shortfall.
The current account to GDP ratio rose to -0.5% in Q2 from -1.1% in
Q1, the highest level since Q3 1998.
The current account shortfall has narrowed sharply over recent
years, partly due to a narrowing in the visible trade shortfall but also
because of strong rise in investment income from abroad.
Earnings of portfolio investment rose sharply in Q2 taking the
total income surplus up to Stg9.581 billion from Stg7.429 billion in Q1.
The trade in goods and services deficit widened slightly in Q2 to
Stg6.778 billion in Q2 from Stg5.832 billion in Q1, but was well down on
the Stg11 billion deficits seen in the second half of 2010.
–London newsroom: 44 20 7634 1655; email: drobinson@marketnews.com
[TOPICS: MABDS$,M$B$$$,MT$$$$]
