---
source: Office for National Statistics
url: https://www.ons.gov.uk/economy/nationalaccounts/balanceofpayments/bulletins/balanceofpayments/octobertodecember2025
document_type: html
date_retrieved: 2026-03-31
period: Quarter 4 (Oct to Dec) 2025
parent_publication: Balance of payments, UK
indicators_covered: [Current Account]
---

# Balance of payments, UK: Quarter 4 (Oct to Dec) 2025

## Main points

* The underlying UK current account deficit, excluding precious metals, narrowed to £8.4 billion, or 1.1% of gross domestic product (GDP), in Quarter 4 (Oct to Dec) 2025; this is a change of £0.6 billion compared with the deficit of £9.0 billion (revised from £10.5 billion) in the previous quarter.

* The UK current account deficit, including trade in precious metals, widened by £7.7 billion to £18.4 billion, or 2.4% of GDP, in Quarter 4 2025.

* Data for all quarters back to Quarter 1 (Jan to Mar) 2024 have been open to revisions, with revisions to "current account, excluding precious metals" data ranging from negative 0.3% to positive 0.2% of GDP.

## Content (Extracted Text)

The underlying UK current account deficit, excluding precious metals, narrowed to £8.4 billion, or 1.1% of gross domestic product (GDP), in Quarter 4 (Oct to Dec) 2025; this is a change of £0.6 billion compared with the deficit of £9.0 billion (revised from £10.5 billion) in the previous quarter.
The UK current account deficit, including trade in precious metals, widened by £7.7 billion to £18.4 billion, or 2.4% of GDP, in Quarter 4 2025.
The total trade deficit, excluding precious metals, narrowed to £2.2 billion, or 0.3% of GDP, in Quarter 4 2025, compared with £4.1 billion (revised from £4.6 billion) in the previous quarter; the goods deficit narrowed to £55.5 billion, and the services surplus decreased to £53.3 billion.
The primary income account deficit widened to £2.7 billion, or 0.3% of GDP, in Quarter 4 2025.
There was a net financial inflow of £9.4 billion in Quarter 4 2025.
The preliminary estimate of the UK's net international investment liability position on 31 December 2025 widened to £199.8 billion, from £151.8 billion (revised from £261.4 billion), as of 30 September 2025.
Data for all quarters back to Quarter 1 (Jan to Mar) 2024 have been open to revisions, with revisions to "current account, excluding precious metals" data ranging from negative 0.3% to positive 0.2% of GDP.
!
Current account and trade figures exclude non-monetary gold (NMG) and other precious metals unless otherwise stated. This is because movements in NMG can be large and highly volatile, distorting underlying trends in goods exports and imports. The headline UK BoP current account and capital account figures published are seasonally adjusted, while financial account and international investment position (IIP) figures are not seasonally adjusted.
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The UK's current account balance is a measure of the country's balance of payments (BoP) with the rest of the world in trade, primary income, and secondary income.
The underlying UK current account deficit, excluding precious metals, narrowed to £8.4 billion, or 1.1% of gross domestic product (GDP), in Quarter 4 (Oct to Dec) 2025. This is a change of £0.6 billion from the deficit of £9.0 billion, or 1.2% of GDP, in the previous quarter, revised from £10.5 billion.
Table 1 summarises the current account data for Quarter 4 2025. The narrowing of the current account deficit in the latest quarter was largely caused by a £2.1 billion narrowing of the trade in goods deficit. This was partially offset by a £1.9 billion expansion of the primary income deficit.
Table 1: The UK’s current account deficit narrowed in Quarter 4 2025
Main current account flows and change compared with Quarter 3 (July to Sept) 2025
Credits
Debits
Balance
Total current account
Value (£bn)
350.2
358.6
-8.4
Change (bn)
1.6
1.0
0.6
Total trade in goods and services
Value (£bn)
233.6
235.8
-2.2
Change (bn)
0.7
-1.3
1.9
Total Trade in Goods
Value (£bn)
93.7
149.2
-55.5
Change (bn)
-1.5
-3.7
2.1
Total Trade in Services
Value (£bn)
140.0
86.6
53.3
Change (bn)
2.2
2.4
-0.2
Total primary income
Value (£bn)
108.4
111.1
-2.7
Change (bn)
0.7
2.6
-1.9
Total secondary income
Value (£bn)
8.1
11.7
-3.6
Change (bn)
0.3
-0.3
0.6
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Table 1: The UK’s current account deficit narrowed in Quarter 4 2025
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Figure 1: The UK’s underlying current account deficit excluding precious metals narrowed in Quarter 4 2025
The UK’s current account balance as a percentage of gross domestic product, Quarter 1 (Jan to Mar) 2023 to Quarter 4 (Oct to Dec) 2025
Source: Balance of payments from the Office for National Statistics
Notes:
Sum of components may not sum to total because of rounding.
Q1 refers to Quarter 1 (Jan to Mar), Q2 refers to Quarter 2 (Apr to June), Q3 refers to Quarter 3 (July to Sept) and Q4 refers to Quarter 4 (Oct to Dec).
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Figure 1: The UK’s underlying current account deficit excluding precious metals narrowed in Quarter 4 2025
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Trade
The total trade deficit for goods and services narrowed to £2.2 billion, or 0.3% of GDP, in Quarter 4 2025, from £4.1 billion in the previous quarter (revised from £4.6 billion). The trade in goods deficit narrowed to £55.5 billion, or 7.2% of GDP, and the trade in services surplus decreased to £53.3 billion, or 6.9% of GDP.
Figure 2: The UK’s total trade deficit narrowed in Quarter 4 2025
The UK’s trade balance, £ billion, Quarter 1 (Jan to Mar) 2023 to Quarter 4 (Oct to Dec) 2025
Source: Balance of payments from the Office for National Statistics
Notes:
Q1 refers to Quarter 1 (Jan to Mar), Q2 refers to Quarter 2 (Apr to June), Q3 refers to Quarter 3 (July to Sept) and Q4 refers to Quarter 4 (Oct to Dec).
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Figure 2: The UK’s total trade deficit narrowed in Quarter 4 2025
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Figure 3: Both exports and imports of goods fell in Quarter 4 2025
Changes in exports and imports of goods, excluding unspecified and semi manufactured goods, £ billion, Quarter 4 (Oct to Dec) 2025 compared with Quarter 3 (July to Sept) 2025
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Notes:
Unspecified goods and semi manufactured goods are not included in this chart or commentary because the commodities contain elements of precious metals.
The trade in goods deficit narrowed by £2.1 billion in Quarter 4 2025, as imports of goods decreased more than exports. Total goods imports fell by £3.7 billion, from £152.9 billion in Quarter 3 (July to Sept) 2025, to £149.2 billion in Quarter 4 2025. The largest decreases in imports of goods were recorded in:
finished manufactured goods, down by £2.9 billion
other fuels, down by £0.4 billion
Exports of goods decreased by £1.5 billion, from £95.2 billion in Quarter 3 2025 to £93.7 billion in Quarter 4 2025. The largest decrease was recorded in finished manufactured goods, down by £1.0 billion.
The trade in services surplus decreased by £0.2 billion in Quarter 4 2025, as both exports and imports of services increased, with imports increasing by a greater amount.
Imports of services increased by £2.4 billion to £86.6 billion in Quarter 4 2025. The largest increases in imports were recorded in other business, insurance and pension services, and intellectual property, all increasing by £0.5 billion each.
Exports of services increased by £2.2 billion to £140.0 billion in Quarter 4 2025. The largest increases in exports were recorded in:
telecommunications, computer and information services, up by £1.6 billion
financial, up by £0.8 billion
travel, up by £0.7 billion
These increases were partially offset by a fall of £1.2 billion in other business services.
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Primary income
The primary income account records income that the UK receives and pays on financial and other assets, along with the compensation of employees.
The primary income account deficit widened from £0.7 billion in Quarter 3 2025 (revised from £1.9 billion) to £2.7 billion, or 0.3% of GDP, in Quarter 4 2025, as debits increased more than credits.
UK receipts (credits) increased by £0.7 billion from the previous quarter, to £108.4 billion. Earnings on direct investment abroad fell, while earnings on portfolio and other investment rose.
UK payments to foreign investors (debits) increased by £2.6 billion from the previous quarter, to £111.1 billion in Quarter 4 2025. This is because of increased payments on direct investment and other investment, which rose by £2.0 billion and £0.7 billion, respectively. This was slightly offset by decreased payments on portfolio investment of £0.1 billion, in which earnings on equity securities increased by £3.2 billion and earnings on debt securities fell by £3.3 billion.
Figure 4: The primary income deficit widened in Quarter 4 2025
The UK’s primary income balance, £ billion, Quarter 1 (Jan to Mar) 2023 to Quarter 4 (Oct to Dec) 2025
Source: Balance of payments from the Office for National Statistics
Notes:
Q1 refers to Quarter 1 (Jan to Mar), Q2 refers to Quarter 2 (Apr to June), Q3 refers to Quarter 3 (July to Sept) and Q4 refers to Quarter 4 (Oct to Dec).
Total includes reserve assets and compensation of employees.
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Figure 4: The primary income deficit widened in Quarter 4 2025
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Secondary income
The secondary income account shows current transfers between UK residents and non-residents.
The secondary income deficit narrowed from £4.1 billion, or 0.5% of GDP, in Quarter 3 2025, to £3.6 billion, or 0.5% of GDP, in Quarter 4 2025.
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A current account deficit, which the UK has experienced each year since 1984, places the UK as a net borrower with the rest of the world, indicating that overall expenditure in the UK exceeds national income. The UK must attract net financial inflows to finance its current (and capital) account deficit. This can be achieved through either disposing of overseas assets to overseas investors or accruing liabilities with the rest of the world.
The financial account recorded a net inflow of £9.4 billion in Quarter 4 (Oct to Dec) 2025 after recording a net inflow of £25.2 billion in Quarter 3 (July to Sept) 2025.
Figure 5: The UK’s financial account recorded a net inflow from the rest of the world in Quarter 4 2025
UK financial account balances, Quarter 1 (Jan to Mar) 2023 to Quarter 4 (Oct to Dec) 2025
Source: Balance of payments from the Office for National Statistics
Notes:
Q1 refers to Quarter 1 (Jan to Mar), Q2 refers to Quarter 2 (Apr to June), Q3 refers to Quarter 3 (July to Sept) and Q4 refers to Quarter 4 (Oct to Dec).
Total includes reserve assets.
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Figure 5: The UK’s financial account recorded a net inflow from the rest of the world in Quarter 4 2025
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Net acquisition of UK assets (investment abroad) represented a financial outflow of £15.6 billion in Quarter 4 2025. Direct investment recorded an outflow of £23.8 billion, as UK investors continued to reinvest earnings to the value of £21.8 billion, while disinvesting in debt instruments to the value of £2.1 billion.
Portfolio investment switched from an outflow of £49.2 billion in Quarter 3 2025 to an inflow of £26.8 billion in Quarter 4 2025. This is because UK investors invested in foreign debt securities to the value of £6.5 billion, while disinvesting in foreign equity and investment fund shares to the value of £33.3 billion. Other investment abroad recorded an outflow of £19.2 billion in Quarter 4 2025.
Net incurrence of UK liabilities (investment in the UK) generated an inflow of £24.9 billion in Quarter 4 2025. Direct investment recorded an inflow of £25.4 billion, as direct investors invested more in equity capital and reinvested earnings. Portfolio investment recorded a £34.7 billion inflow, as foreign investors invested in UK debt securities and equity and investment fund shares. Other investment switched from an inflow of £213.2 billion in Quarter 3 2025 to an outflow of £35.2 billion in Quarter 4 2025.
More details are available in our
Quarterly economic commentary article
.
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The international investment position (IIP) represents the UK's balance sheet with the rest of the world. IIP measures the difference between the net stock of assets and liabilities at a point in time, which we report as the last day of each quarter.
The preliminary estimate of the UK's net international investment liability position was £199.8 billion at the end of Quarter 4 (31 December) 2025, compared with £151.8 billion at the end of Quarter 3 (30 September) 2025 (revised from £261.4 billion).
In addition to a net inflow, as recorded in
Section 3: Financial account
, the IIP was impacted by rising equity prices. These rises increased the value of both UK assets held abroad and foreign-held liabilities in the UK during Quarter 4 2025. However, the upward revaluation of liabilities outweighed that of assets.
Figure 6: The UK’s international investment net liability position widened in the latest quarter
UK net international investment position, end of Quarter 1 (31 March) 2023 to the end of Quarter 4 (31 December) 2025
Source: Balance of payments from the Office for National Statistics
Notes:
IIP is a point-in-time estimate, which we report as the final day of each calendar quarter. In the chart, Q1 refers to 31 March, Q2 to 30 June, Q3 to 30 September and Q4 to 31 December.
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Figure 6: The UK’s international investment net liability position widened in the latest quarter
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The UK asset position on 31 December 2025 was valued at £14,778.8 billion. The value of the UK liability position with the rest of the world was valued at £14,978.6 billion.
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In line with our
National Accounts Revisions Policy
, the data accompanying this bulletin are open to revision from 2024 onwards. Revisions to "current account, excluding precious metals" data range from negative 0.3% to positive 0.2% of gross domestic product (GDP).
Revisions resulted from:
improvements to our methodology
for removing the double counting of precious metals across different data sources from Quarter 1 (Jan to Mar) 2024
a
processing error
in ship transactions data from Quarter 1 2024
revisions to trade in goods exports, because of new merchanting data, from Quarter 1 2024
updated trade in services data, as updated administrative data became available, allowing us to extend our method for forecasting travel services to incorporate Civil Aviation Authority passenger data
Table 2: Revisions to reported percentages for the current account, excluding precious metals, as a percentage of GDP
Revisions to the current account, excluding precious metals, as a percentage of gross domestic product (GDP), Quarter 1 (Jan to Mar) 2024 to Quarter 3 (July to Sept) 2025
Period
Trade in goods excluding precious metals
Trade in services
Total trade excluding precious metals
Total primary income
Total secondary income
Current account excluding precious metals
Q1 2024
0.0
-0.1
0.0
0.0
0.0
0.0
Q2 2024
0.1
0.0
0.1
0.0
0.0
0.1
Q3 2024
0.2
-0.1
0.1
0.1
0.0
0.2
Q4 2024
-0.2
0.0
-0.2
-0.1
-0.1
-0.3
Q1 2025
0.0
0.1
0.0
0.0
0.0
0.1
Q2 2025
-0.3
0.0
-0.3
0.0
0.0
-0.3
Q3 2025
0.0
0.1
0.1
0.1
0.0
0.2
Download this table
Table 2: Revisions to reported percentages for the current account, excluding precious metals, as a percentage of GDP
.xls
.csv
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Balance of payments
Dataset | Released 31 March 2026
Quarterly summary of balance of payments accounts including the current account, capital transfers, transactions, and levels of UK external assets and liabilities.
Balance of payments time series
Dataset | Released 31 March 2026
Quarterly summary of balance of payments accounts including the current account, capital transfers, transactions and levels of UK external assets and liabilities.
Balance of payments – revision triangles
Dataset | Released 30 September 2025
Quart