United Kingdom: Trade Gap Smallest in 4 Months. The UK trade deficit narrowed to GBP 4.34 billion in December 2025, down from a downwardly revised GBP 5.56 billion in November. It marked the smallest trade gap since August, as exports fell less than imports. Exports dropped 1.0% month-on-month to a three-month low of GBP 76.96 billion, while imports fell 2.4% to a three-month low of GBP 81.30 billion. Goods exports shrank 3.2% mom to a three-month low of GBP 30.09 billion, driven by lower shipments to EU countries (-1.9%) and non-EU countries (-4.4%), mainly reflecting a decline in exports of medicinal and pharmaceutical products to China, Japan, and South Korea. By contrast, exports of goods to the US, including precious metals, rose 2.5% due to higher exports of medicinal and pharmaceutical products and inorganic chemicals. Meanwhile, services exports grew 0.5% to GBP 46.87 billion. On the import side, goods imports fell 3.4% to a three-month low of GBP 52.81 billion, while services imports fell 0.5% to a three-month low of GBP 28.49 billion.