UK DATA: Q2 Current Account Deficit Stg2.022bn Vs Stg4.12bn Q1
–Q2 Current Account Deficit/GDP Ratio -0.5%; highest since 1998
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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.
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
far better than expected data may well help to give Stg a boost.