The current account gap in the United Kingdom widened to GBP 26.52 billion in the third quarter of 2018 from a downwardly revised GBP 19.95 billion in the previous quarter and compared to market expectations of a GBP 21.2 billion deficit. It was the largest current account gap since the third quarter of 2016, as all the main components contributed to the worsening current account balance. The primary income deficit rose to GBP 11.11 billion from GBP 7.47 billion in the prior period, driven by an increase in the profits generated by overseas investors on their UK foreign direct investment (FDI). Also, the goods and services shortfall advanced to GBP 8.78 billion from GBP 7.01 billion, amid a fall in the UK’s trade in services surplus. Finally, the secondary income gap increased to GBP 6.63 billion from GBP 5.48 billion in the second quarter of 2018. Current Account in the United Kingdom averaged -4536 GBP Million from 1946 until 2018, reaching an all time high of 2654 GBP Million in the first quarter of 1981 and a record low of -32163 GBP Million in the fourth quarter of 2015.
Current Account in the United Kingdom is expected to be -20400.00 GBP Million by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Current Account in the United Kingdom to stand at -24600.00 in 12 months time. In the long-term, the United Kingdom Current Account is projected to trend around -20800.00 GBP Million in 2020, according to our econometric models.