The UK’s current account deficit narrowed to GBP 19.9 billion (2.5% of GDP) in the second quarter of 2026 from a downwardly revised GBP 21.1 billion in the previous quarter, better than market expectations for a GBP 24.7 billion shortfall. It was the smallest current account deficit since Q3 2025, as the secondary income deficit narrowed to GBP 3.3 billion, equivalent to 0.4% of GDP, from GBP 3.7 billion in the previous period. Meanwhile, the goods trade deficit declined to GBP 64.0 billion from GBP 65.0 billion in the prior quarter, while the services surplus increased to GBP 51.3 billion from GBP 48.8 billion. By contrast, the primary income deficit widened to GBP 3.8 billion, or 0.5% of GDP, from GBP 1.3 billion in the first quarter, as payments to foreign investors increased by GBP 5.4 billion to GBP 112.9 billion, while receipts climbed by GBP 2.8 billion to GBP 109.0 billion.