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28 September 2018

Bloomberg: UK current-account deficit widens ahead of Brexit


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The UK current-account deficit widened more than economists forecast in the second quarter, raising fresh questions about the sustainability of the shortfall as Britain prepares for Brexit.


The gap between money leaving the U.K. and money coming in stood at 20.3 billion pounds ($26.5 billion) between April and June, the equivalent of 3.9 percent of gross domestic product. A shortfall of 19.4 billion pounds was forecast by economists in a Bloomberg survey.

The Office for National Statistics left its estimate of GDP growth in the period at 0.4 percent, but business investment fell for a second straight quarter and inflation-pressured households once again spent more than they earned. Growth in the first quarter was revised back down to 0.1 percent, the weakest since the end of 2012.

Brexit has put the current account back in the spotlight, with economists questioning the willingness of foreign investors to keep financing the deficit by buying British assets after Britain exits the European Union. [...]

Full article on Bloomberg



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