By Lea Pachta
The current account recorded a deficit of £4.7 billion in the third quarter of 2009, equating to -1.3 per cent of GDP. This compares with a revised deficit of £4.4 billion (-1.3 per cent of GDP) in the second quarter. A deficit of £1.6 billion was recorded with the EU compared with a deficit of £2.0 billion in the previous quarter.
Compared with the second quarter, the current account showed a lower surplus on income, which was partly offset by a fall in the deficit on current transfers together with an increase in the surplus on trade in services. The surplus on income fell by £1.5 billion to £6.7 billion, while the deficit on current transfers decreased by £0.6 billion to £3.6 billion and the surplus on trade in services increased by £0.4 billion to £11.8 billion. The deficit on trade ingoods was little changed at £19.7 billion.
The current account balance has been revised from the first quarter of 2008. The current account balance now shows a deficit of £22.0 billion in 2008, equivalent to -1.5 per cent of GDP.