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One of the bugbears investors have with the GBP, contributing to its deep slide after the Brexit vote, is a persistent UK current account deficit, according to Greg Gibbs, Analyst at Amplifying Global FX Capital.  

Key Quotes

“It reached a record wide point around the time of Brexit at over 6% of GDP.   It has since narrowed to 3.6% of GDP in Q4 last year.   But most of this improvement reflects a narrower income deficit.”

“The Goods and Services Trade Deficit is less alarming at 1.5% of GDP in Q4.   It has improved in recent years but only modestly (from 2% around the time of the Brexit vote in 2016).”