The UK recorded a seasonally adjusted current account surplus of STG2.44bn in the first quarter, according to figures released today by National Statistics. This is the first surplus since the third quarter of 1998, and marks the biggest current account surplus in 22 years. The current account surplus amounts to 0.9pc of UK GDP. The first quarter current account surplus was entirely unexpected. The consensus forecast of economists was for a deficit of STG2.8bn. In the fourth quarter, the UK recorded a revised deficit of STG1.76bn, up from the previous estimate of a STG3.07bn gap.
The surplus in the first quarter was due to higher earnings from UK investments abroad, particularly in the oil sector. Oil prices rose nearly 20pc in the first quarter from Q4 2002, an NS spokesman said. It also reflects higher goods exports in the first three months of the year. The revision to the fourth quarter current account deficit reflects bigger foreign direct investment into the UK than previously estimated, and changes to seasonal adjustment measures, an NS spokesman said. //www.fxcentre.com