The UK’s current account deficit narrowed to GBP 12.1 billion (1.6% of GDP) in Q3 2025, down from a downwardly revised GBP 21.2 billion in Q2 and well below expectations of a GBP 21.3 billion shortfall. This marked the smallest deficit since Q4 2022, driven primarily by a sharp improvement in the primary income balance. The primary income deficit narrowed significantly to GBP 1.9 billion from GBP 8.4 billion, as credits rose by GBP 5.5 billion while payments to foreign investors declined by GBP 1.1 billion. Additionally, the goods trade deficit narrowed to GBP 58.9 billion from GBP 60.0 billion. Meanwhile, the services surplus increased to GBP 52.8 billion from GBP 51.3 billion, as exports grew by a larger amount than imports. Exports of services rose by GBP 2.2 billion to GBP 137.9 billion, driven primarily by transport and intellectual property services. On the other hand, the secondary income deficit widened slightly, rising by GBP 0.1 billion to GBP 4.1 billion (0.5% of GDP), up from GBP 4.0 billion (0.5% of GDP) in Q2.