UK current account deficit a bugbear for GBP - AmpGFX

Sandeep Kanihama FXStreet Contributor

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).”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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