First Quarter Balance Of Payments £15.5bn Deficit

The UK current account deficit increased to £14.5bn in the first quarter of 2013 from £13.6bn in Q4 2012 according to a statistical bulletin from the ONS. The Q1 deficit equals 3.6% of GDP. The trade deficit improved to £6.1bn in Q1 2013 from £8.3bn in Q4 2012.

The monthly analysis shows that income balance fell to -£2.1bn from a surplus of £1bn which had the effect of increasing net borrowing from £12.7bn to £13.9bn. A decrease in the deficits of trade in goods and services of £2.1bn and in current transfers of £0.2bn partially offset the increase.

The UK was a net borrower of £55.4bn in 2012 from £18.5bn in 2011 mainly due to the income surplus of £22.5bn in 2011 becoming a deficit of £2.3bn in 2012 mainly due to a decrease in direct investment income surplus.

Trade in goods was -£26.5bn from -£28bn in the previous quarter. Exports rose by £0.9bn while imports fell by £0.5bn. Trade in services was £20.4bn in surplus up £0.7bn on the previous quarter. Exports increased to £49.4bn while imports increased by £0.3bn to £29bn.

Transfers were £6.2bn in deficit in Q1 2013, a decrease of £0.2bn.

The capital account was £0.6bn in surplus in Q1 2013 down £0.3bnn from the previous quarter. Inward investment was £10.2bn. The UK currnet account deficit £59.2bn.

Euro Area Trade In Goods In Surplus

The euro area trade in goods balance with the rest of the world for October this year shows a surplus of 10.2bn euros compared with October last year and 9.5bn euros surplus with September. Exports fell by 1.4% in October but imports grew by 0.6%. The EU27 however showed a deficit of 9.4bn euros compared with a deficit of 11.3bn euros in October 2011. The deficit in September was 12.5bn euros. Exports fell by 1.7% while imports rose by 0.3% in October compared with September.

Fall In Balance Of Payments Deficit

The current account reported a deficit of £9.4bn for the first quarter of 2011 equivalent to -2.5% of GDP. The deficit for Q4 2010 was £13bn. There was a deficit of £15bn with the EU compared with £16.9bn in Q4 2010. Trade in goods was -£22.2, trade in services showed a surplus of £13.8bn. Income fell from £7.4bn in Q4 2010 to £4.6bn in Q1 2011. The capital account balance was £0.6bn.

Balance of Payments Deficit Increase On Quarter

The current account deficit increased to £10.5bn in Q4 2010 from a revised deficit of £8.7bn in Q3. It equates to -2.9% of GDP. The increase was due to hogher deficits on current transfers and on trade in goods and a lower trade in services surplus.

Services Trade Surplus Steady

In September UK deficit on trade in goods and services was £4.6bn compared with £4.9bn in August. Trade in goods deficit was £8.2bn and the trade in services surplus was £3.7bn unchanged from August.

A Narrowing In The Balance Of Payments

The ONS bulletin on the balance of payments showed a net current account deficit of £8.5bn from £8.8bn in the previous quarter. The income surplus increased by £3.4bn to £3.5bn, the deficit on trade in goods fell by £1.5bn to £20.8bn and the deficit on trade on current transfers increased by £1bn to £3.8bn. These were partly offset by the surplus on trade in services which fell £3.7bn to £12.6bn. The current account balance showed a £25.1bn deficit, or -1.7% of GDP in 2008 compared to -2.5% now. The deficit on trade in goods narrowed from £22.3bn to £20.8bn by £0.2bn in oil, fuels other than oil by £0.2bn and finished manufactured goods by £1bn. The surplus on trade in services was £12.6bn. It reflects a decrease in financial and insurance services. Direct investment income was up £3.7bn to £9.8bn, but portfolio investment showed a deficit of £1.4bn. The capital account was almost unchanged with a surplus of £0.8bn in Q1 2009. Net direct investment abroad was £32.4bn and in the UK £34.2bn. Net portfolio investment abroad was £38.3bn and in the UK £122.2bn, the highest on record. Debt securities accounted for £96.9bn in the first quarter.