UK Current Account Deficit Narrows to £11.4 Billion in Q4, GDP Improves by 1.3%

Source: Office for National Statistics

The UK current account deficit that excludes precious metals was 11.4 billion pounds in the fourth quarter of 2021, down from 26.1 billion in the previous quarter. FTSE 100 is down -0.20%, GBPUSD is up +0.05%.

• In the primary income account, the total current account balance was a surplus of 4.7 billion pounds or 0.8% of GDP, the first-ever surplus since the fourth quarter of 2021.
• The net financial flows rose in the fourth quarter with a total of 13.1 billion pounds net inflows in the fourth quarter. 
• The UK GDP also increased, adding up to 1.3% in the fourth quarter to remain at 0.1% below the pre-pandemic level. In 2021, the UK GDP is estimated to have improved by 7.4%, after a decline of 9.3% in 2020. 
• The UK’s net borrowing from the rest of the world improved to -1.3% as a percentage of the GDP, compared to -5.1% in the third quarter.