UK current account deficit in 2014 highest since 1948

The UK’s deficit in current transaction with the rest of the world shrank in the final stretch of 2014, albeit by less than forecast

The country’s current account deficit decreased to -£25.3bn in the final three months of last year, from an upwardly revised £27.7bn in the third quarter, according to the Office for National Statistics (ONS).

Analysts had been expecting a reading of -£22bn.

The fourth quarter deficit was a hefty 5.6% of gross domestic product.

Over all of 2014 the current account fell into the red to the tune of -£97.9bn, in comparison to a deficit of -£76.7bn in 2013. The former was equal to 5.5% of GDP – the largest since 1948 at current market prices.

The trade deficit narrowed to -£6bn in the fourth quarter from the -£10.2bn seen in the previous three months.