Baroness Kennedy of Cradley – 2015 Parliamentary Question to the HM Treasury

The below Parliamentary question was asked by Baroness Kennedy of Cradley on 2015-11-10.

To ask Her Majesty’s Government what assessment they have made of the current account deficit in trade.

Lord O’Neill of Gatley

The current account deficit was 5.1 per cent of GDP in 2014. The trade balance has been broadly stable, while the UK’s net investment income has fallen, as weakness in the euro area has depressed the returns on the UK’s holding of foreign direct investment. Figures for Q2 2015 show that the deficit has narrowed, driven by an improvement in the trade and investment income balances. The Office for Budget Responsibility forecasts a narrowing of the current account deficit over the forecast period.