UK current account deficit balloons to record £27bn

The UK's current account deficit widened faster than expected in the third quarter to reach a record high of £27bn.

The Office for National Statistics (ONS) said today the Q3 deficit stood at £27bn, up from £24.3bn in Q2 2014 and significantly worse than economists' expectations of a £23bn figure. Today's figure means the deficit now accounts for 6% of GDP, up from 5.5% in the second quarter. The widening was due to a increase in the deficit on the primary income account from £8.2bn in the second quarter to £12.6bn in the third quarter. A fall in foreign direct investment and an increase in payments to foreign investors were the two main causes of this drop, the ONS said. In a sign of ongoing...