UK DATA: Q4 Current account balance -Stg10.488bn vs -Stg8.663bn in Q3
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The current account deficit widened in Q4 to Stg10.5bn, broadly in line
with the median for a Stg10.3bn shortfall. There was a significant rise
in the transfers deficit to Stg6.1bn from Stg4.9bn with higher payments
to EU institutions. The goods deficit hit a record quarterly deficit of
Stg26.8bn and a record 7.3% of GDP. Given the fall in Sterling in recent
years, the growing trade gap is somewhat surprising. If the economic
rebalancing is to occur then we’ll need to see a sharp improvement here
over the quarters ahead.