UK current account deficit a bugbear for GBP - AmpGFX
|One of the bugbears investors have with the GBP, contributing to its deep slide after the Brexit vote, is a persistent UK current account deficit, according to Greg Gibbs, Analyst at Amplifying Global FX Capital.
Key Quotes
“It reached a record wide point around the time of Brexit at over 6% of GDP. It has since narrowed to 3.6% of GDP in Q4 last year. But most of this improvement reflects a narrower income deficit.”
“The Goods and Services Trade Deficit is less alarming at 1.5% of GDP in Q4. It has improved in recent years but only modestly (from 2% around the time of the Brexit vote in 2016).”
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