23 Dec 2015
UK’s 2015 current account deficit likely to end up just below 4% GDP - SocGen
FXStreet (Delhi) – Kit Juckes, Research Analyst at Societe Generale, suggests that there’s a decent chance the UK’s 2015 current account deficit will now end up (just) below 4% GDP, a dramatic improvement on the 6.2% we saw in Q4 2014.
Key Quotes
“The current account data are difficult to get to grips with because the driver of the distortion in recent years has been the balance of investment income rather than anything to do with trade in goods or services. But while a sub-4% deficit will still be comfortably the worst in the G7 economies, it’ll probably be smaller than the deficits we see this year in Australia, New Zealand or Turkey. On a par, perhaps, with Brazil’s deficit though that’s hardly cheerful company from a currency market perspective!”
Key Quotes
“The current account data are difficult to get to grips with because the driver of the distortion in recent years has been the balance of investment income rather than anything to do with trade in goods or services. But while a sub-4% deficit will still be comfortably the worst in the G7 economies, it’ll probably be smaller than the deficits we see this year in Australia, New Zealand or Turkey. On a par, perhaps, with Brazil’s deficit though that’s hardly cheerful company from a currency market perspective!”