UK Deficit Grows in Q3 To 24 Year High

There were warnings Britain’s economic recovery was on shaky ground on Friday after official data showed the country’s current account deficit with the rest of the world soared to its highest since 1989.

Dealing a blow to chancellor George Osborne’s push for a Britain that can “pay its way” in the world, the gap – Britain’s trade deficit, plus the losses UK plc makes on its overseas ventures – ballooned to £21bn in the three months to September from a deficit of £6bn in the previous quarter.

As a percentage of GDP, the deficit was 5.1%, the biggest share for more than 20 years, the Office for National Statistics said.

There was similarly downbeat news for the government’s push to rebalance the economy from figures on what has been driving growth, and separate ONS data showed that public finances deteriorated last month.

Graeme Leach, chief economist at the Institute of Directors, said: “As the chancellor looks at the latest GDP figures, he’s likely to reach for a glass of wine and indigestion tablets at the same time. The strength of GDP, with faster year-on-year growth, will be a cause for celebration. But the sources of that growth will make him uncomfortable.”

via UK deficit jumps to 24 year high – ONS | Business | theguardian.com

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza