The current account gap in the United Kingdom widened by GBP 0.7 billion to GBP 23.7 billion in the last quarter of 2018 from a downwardly revised GBP 23 billion in the previous quarter and compared with market expectations of a GBP 23 billion gap. It was the largest current account gap since the third quarter of 2016, as the trade deficit widened to GBP 9.4 billion from GBP 8.9 billion in Q3, mainly due to the goods gap. The goods deficit went up to GBP 36.9 billion from GBP 34.8 billion while the services surplus advanced to GBP 27.5 billion from GBP 26 billion. Additionally, the primary income shortfall rose by GBP 1.1 billion to GBP 8.4 billion, recording the largest deficit since the last quarter of 2016 (GBP 9.9 billion). Meanwhile, the secondary income gap declined to GBP 5.9 billion from GBP 6.8 billion in the third quarter of 2018. Considering full 2018, the current account recorded a GBP 81.6 billion gap compared to a GBP 68.4 billion deficit in 2017. Current Account in the United Kingdom averaged -4584.59 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.