UK Trade Deficit Narrows to £8.4 Billion in Q4 2025

The UK's underlying current account deficit, excluding precious metals, narrowed to £8.4 billion, or 1.1% of GDP, in the fourth quarter of 2025, improving from a revised £9.0 billion in the previous quarter, according to the Office for National Statistics. The total trade deficit shrank to £2.2 billion, down from £4.1 billion in Q3 2025, driven by a £2.1 billion narrowing of the goods deficit. Goods imports fell by £3.7 billion to £149.2 billion, led by a £2.9 billion drop in finished manufactured goods. The services surplus, however, slipped slightly to £53.3 billion. Including precious metals, the current account deficit widened sharply by £7.7 billion to £18.4 billion. The primary income deficit expanded to £2.7 billion as payments to foreign investors rose by £2.6 billion. The financial account recorded a net inflow of £9.4 billion, while the UK's net international investment liability position widened to £199.8 billion from a revised £151.8 billion at the end of Q3 2025.