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.
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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