The UK’s current account deficit widened to 23.5 billion pounds (3.2% of GDP) in Q1 2025, up from 21.0 billion pounds in Q4 2024 and well above expectations of a 19.75 billion pounds shortfall. It was the largest deficit since Q2 2024, driven primarily by a sharp deterioration in the primary income balance. The primary income deficit widened by 2.9 billion pounds to 6.4 billion pounds, as credits fell more than debits - receipts declined by 6.7 billion pounds, while payments to foreign investors fell by 3.8 billion pounds. Meanwhile, the services surplus narrowed by 1.4 billion pounds to 47.8 billion pounds, with services imports rising by 5.4 billion pounds and outpacing a 4.0 billion pounds increase in services exports. In contrast, the goods trade deficit shrank by 4.1 billion pounds to 55.3 billion pounds, largely due to a 6.2 billion pounds increase in goods exports, while goods imports rose by 2.0 billion pounds. The secondary income deficit also narrowed slightly, falling by 0.3 billion pounds to 4.7 billion pounds (0.6% of GDP), down from 5.0 billion pounds (0.7% of GDP) in Q4 2024.