Gold Imports Drive British Current Account Deficit to Highest Level Since 2016
Arslan Butt • 1 min read
British current account deficit shot up during Q1 2019 to touch the highest level since 2016. According to data released by the Office for National Statistics, the current account deficit climbed to 30 billion pounds during the first three months of this year, from 23.7 billion pounds in the previous quarter.
However, the figure beat expectations which was for a reading of 32 billion pounds. According to the ONS, the main driver for this sudden jump is the high import of unspecified goods, including gold. Without taking these imports into consideration, Britain’s current account deficit is at 3.7% of its GDP, while including these imports takes the figure to 5.6% of GDP.
UK’s economy grew at 1.8% in Q1 GDP, as expected, registering the fastest growth since Q3 2017. Brexit uncertainties, however, can bring the economic growth down to 1.5% in 2019, according to latest estimates by the Bank of England.