Balance of payments, UK: January to March 2025

• The underlying UK current account deficit excluding precious metals narrowed to £18.6 billion, or 2.5% of gross domestic product (GDP), in Quarter 1 (Jan to Mar) 2025; this is a change of £0.1 billion from the deficit of £18.7 billion for the previous quarter.

• The UK current account deficit, when trade in precious metals is included, expanded by £2.4 billion to £23.5 billion, or 3.2% of GDP in Quarter 1 2025.

• The total trade deficit, excluding precious metals, narrowed to £7.5 billion (1.0% of GDP) in Quarter 1 2025, from £10.2 billion in the previous quarter, as the goods deficit narrowed to £55.3 billion, and the services surplus narrowed to £47.8 billion.

• The primary income account deficit widened to £6.4 billion, or 0.9% of GDP in Quarter 1 2025.

• There was a net financial inflow of £13.9 billion in Quarter 1 2025; portfolio investment moved to a net outflow and other investment moved to a net inflow.

• The preliminary estimate of the UK's net international investment liability position on 31 March 2025 widened to £371.5 billion, from £280.1 billion as of 31 December 2024.

FDI-related estimates

Following a temporary pause to full processing of Foreign Direct Investment (FDI) Survey data, FDI-related estimates for all quarters in 2023, Quarter 1 (Jan to Mar) 2024 and Quarter 1 2025 are based on fully processed survey data. However, FDI-related estimates from Quarter 2 (Apr to June) 2024 to Quarter 4 (Oct to Dec) 2024 remain subject to more uncertainty than usual, and users should be cautious when interpreting recent FDI data in the balance of payments (BoP) statistics.

Timing for incorporating revised estimates for each period will be in line with the latest National Accounts Revisions Policy. Revised estimates for all periods from 2021 will be completed in the 2025 edition of Pink Book and Blue Book. For more information about these periods, see the subsection "Uncertainty around estimates based on FDI survey data" in Section 7: Data sources and quality. 

The UK's current account balance is a measure of the country's balance of payments (BoP) with the rest of the world in trade, primary income, and secondary income.

The underlying UK current account deficit excluding precious metals narrowed to £18.6 billion, or 2.5% of gross domestic product (GDP), in Quarter 1 (Jan to Mar) 2025; this is a change of £0.1 billion from the previous quarter when the deficit was £18.7 billion.

Table 1 summarises the latest current account data for Quarter 1 2025.

Notes:

1. Sum of components may not sum to total because of rounding.
2. Current account and trade figures exclude trade in precious metals.
3. Foreign direct investment (FDI)-related estimates from Quarter 2 (Apr to June) 2024 to Quarter 4 (Oct to Dec) 2024 are based on quarterly survey data, but with simpler processing than normal and users should be cautious when interpreting 2024 FDI data in the balance of payments (BoP) statistics. For more detail see the subsection "Uncertainty around estimates based on FDI survey data" in Section 7: Data sources and quality.

Trade

The total trade deficit for goods and services narrowed to £7.5 billion, or 1.0% of GDP, in Quarter 1 2025. This was a decrease from £10.2 billion, or 1.4% of GDP in Quarter 4 (Oct to Dec) 2024.

The trade in goods deficit narrowed by £4.1 billion from the previous quarter to £55.3 billion, or 7.5% of GDP. The trade in services surplus narrowed by £1.4 billion to £47.8 billion, or 6.5% of GDP.

Figure 3: Exports of goods increased in Quarter 1 2025

Changes in imports and exports of goods, excluding unspecified goods, £ billion, Quarter 1 (Jan to Mar) 2025 compared with Quarter 4 (Oct to Dec) 2024

The trade in goods deficit narrowed by £4.1 billion in Quarter 1 2025 because of a rise in the value of goods exports. Total goods exports rose by £6.2 billion from £86.4 billion in Quarter 4 2024 to £92.6 billion in Quarter 1 2025. The largest increases in exports of goods were recorded in:

• semi-manufactured goods (£4.6 billion)

• finished manufactured goods (£1.2 billion)

• other fuels (£0.5 billion)

• food, beverages and tobacco (£0.3 billion)

These increases were offset slightly by a fall in the value of exports of basic materials and exports of oil, which both fell by £0.2 billion.

Imports of goods increased by £2.0 billion, from £145.9 billion in Quarter 4 2024 to £147.9 billion in Quarter 1 2025. The largest increases were recorded in imports of other fuels, which increased by £1.9 billion, along with imports of finished manufactured goods, namely machinery and transport equipment, which increased by £1.2 billion in Quarter 1 2025.

The trade in services surplus narrowed by £1.4 billion in Quarter 1 2025 as imports of services increased more than exports.

Imports of services increased by £5.4 billion in Quarter 1 2025 as imports of other business services increased by £2.7 billion and imports of travel services increased by £2.1 billion.

Exports of services increased by £4.0 billion in Quarter 1 2025. The largest increases in exports were recorded in:

• other business services (£1.7 billion)

• travel services (£1.6 billion)

• insurance and pension services (£0.6 billion)

• transport services (£0.6 billion)

Offsetting these increases slightly were exports of financial services, and telecommunications, computer and information services, which both fell by £0.3 billion; intellectual property services, which fell by £0.2 billion; and manufacturing and maintenance services, which fell by £0.1 billion.

Primary income

The primary income account records income that the UK receives and pays on financial and other assets, along with the compensation of employees.

The primary income account deficit widened from £3.5 billion in Quarter 4 2024 to £6.4 billion, or 0.9% of GDP, in Quarter 1 2025 as credits decreased by more than debits.

UK receipts (credits) decreased by £6.7 billion from the previous quarter to £96.8 billion, as earnings on direct investment fell by £6.3 billion.

UK payments to foreign investors (debits) decreased by £3.8 billion from the previous quarter to £103.2 billion in Quarter 1 2025 because of decreased payments on direct investment and other investment, which fell by £2.8 billion and £2.7 billion, respectively. This was slightly offset by increased payments on portfolio investment of £1.8 billion.

Secondary income

The secondary income account shows current transfers between residents and non-residents.

The secondary income deficit decreased from £5.0 billion, or 0.7% of GDP, in Quarter 4 2024 to £4.7 billion, or 0.6% of GDP, in Quarter 1 2025.

A current account deficit, which the UK has experienced each year since 1984, places the UK as a net borrower with the rest of the world, indicating that overall expenditure in the UK exceeds national income. The UK must attract net financial inflows to finance its current (and capital) account deficit. This can be achieved through either disposing of overseas assets to overseas investors or accruing liabilities with the rest of the world.

The financial account recorded a net inflow of £13.9 billion in Quarter 1 (Jan to Mar) 2025 after recording a net inflow of £11.1 billion in Quarter 4 (Oct to Dec) 2024.

Net acquisition of UK assets (investment abroad) represented a financial outflow of £130.0 billion in Quarter 1 2025. Portfolio investment switched from an inflow of £62.1 billion in Quarter 4 2024 to an outflow of £76.0 billion in Quarter 1 2025 as UK investors invested in foreign equity and investment fund shares (£29.3 billion), and debt securities (£46.7 billion).

Within portfolio investment, we saw UK monetary financial institutions, insurance companies and pension funds, and other financial intermediaries switch from selling investments in Quarter 4 2024 to purchasing investments in Quarter 1 2025. Other investment abroad recorded an outflow of £59.1 billion in Quarter 1 2025 as UK monetary financial institutions invested in foreign currency loans.

Net incurrence of UK liabilities (investment in the UK) was an inflow of £143.8 billion in Quarter 1 2025. Other investment moved from an outflow of £34.8 billion in Quarter 4 2024 to an inflow of £101.8 billion in Quarter 1 2025 as foreign investors deposited foreign currency in UK banks and other financial intermediaries invested in loans. Portfolio investment recorded a £37.5 billion inflow and direct investment recorded a £4.5 billion inflow.

Further details are available in our Quarterly economic commentary article.

The international investment position (IIP) represents the UK's balance sheet with the rest of the world. IIP measures the difference between the net stock of assets and liabilities at a point in time, which we report as the last day of each quarter.

The preliminary estimate of the IIP net liability position was £371.5 billion at the end of Quarter 1 (31 March) 2025, compared with £280.1 billion at the end of Quarter 4 (31 December) 2024, as the value of UK assets decreased by more than the value of UK liabilities.

The UK asset position on 31 March 2025 was valued at £13,914.5 billion. The value of the UK liability position with the rest of the world was valued at £14,286.0 billion.

Although there was a net outflow of portfolio investment, other volume-related factors affected the gross stock values. The appreciation of the British pound against the US dollar reduced the value of assets and liabilities denominated in foreign currencies. Additionally, rising UK equity prices influenced the valuation of liabilities.

Balance of payments 

The balance of payments is a statistical statement that summarises transactions between residents and non-residents during a period. It consists of the current account, capital account and financial account. 

Current account 

The current account is made up of the trade in goods and services account, the primary income account, and the secondary income account. The difference in the monetary value of these accounts is known as the current account balance. A current account balance is in surplus if overall credits exceed debits, and it is in deficit if overall debits exceed credits. 

Capital account 

The capital account has two components: capital transfers and the acquisition (purchase) or disposal (sale) of non-produced, non-financial assets. 

Capital transfers are those involving transfers of ownership of fixed assets, transfers of funds associated with the acquisition or disposal of fixed assets, and cancellation of liabilities by creditors without any counterparts being received in return. The sale or purchase of non-produced, non-financial assets covers intangibles such as patents, copyrights, franchises, leases and other transferable contracts, and goodwill. 

Financial account 

The financial account covers transactions that result in a change of ownership of financial assets and liabilities between UK residents and non-residents. For example, the acquisitions and disposals of foreign shares by UK residents. The accounts are presented by the functional categories of direct investment, portfolio investment, other investment, financial derivatives, and reserve assets. 

International investment position 

The international investment position (IIP) is a statement that shows at the end of the period the value and composition of UK external assets (foreign assets owned by UK residents) and identified UK external liabilities (UK assets owned by foreign residents). The framework of international accounts stipulates that the IIP is also presented by functional category, consistent with primary income and the financial account. 

Precious metals 

In line with international standards, the Office for National Statistics' (ONS's) headline trade statistics contain the UK's exports and imports of non-monetary gold. This trade can greatly influence the size and changes in the UK's headline trade figures. This is because a substantial amount of the world's trade in non-monetary gold takes place on the London markets. 

Further information on precious metals and their impact can be found in our UK trade bulletin. 

Special drawing rights 

Some International Monetary Fund (IMF) member countries have access to international reserve assets called special drawing rights (SDRs). A general allocation of SDRs, equivalent to approximately US $650 billion, became effective on 23 August 2021 and was allocated to participant countries in proportion to their existing quotas. The UK's SDR allocation was equivalent to $19,318 million and was received in August 2021. 

Net errors and omissions 

Although the balance of payments accounts are, in principle, balanced, imbalances between the current, capital, and financial accounts arise from imperfections in source data and compilation in practice. This imbalance, a usual feature of balance of payments data, is labelled "net errors and omissions." 

For more detailed definitions of terms used in the balance of payments, see our glossary (PDF, 123KB).

Data sources

Balance of payments statistics are compiled from a variety of sources, produced in the national accounts sector and financial accounts (SFA) framework. Some of the main sources used in the compilation include:

• overseas trade statistics (HM Revenue and Customs (HMRC))

• International Trade in Services Survey (ITIS) (Office for National Statistics (ONS))

• International Passenger Survey (ONS); this was suspended between March 2020 and January 2021 because of the coronavirus (COVID-19) pandemic, and is currently undergoing transformation

• Foreign Direct Investment Survey (ONS and Bank of England (BoE))

• various financial inquiries (ONS and BoE)

• Ownership of UK Quoted Shares Survey (ONS)

Trade is measured through both exports and imports of goods and services. Data are supplied by over 30 sources, including several administrative sources, with HMRC being the largest for trade in goods. ITIS, conducted by the ONS, is the largest single data source for trade in services.

The main source of information for UK foreign direct investment (FDI) statistics is our FDI Survey. Separate surveys are used to collect data on inward and outward FDI. This is combined with data from the BoE on the banking sector.

The statistics in this bulletin are compiled using the asset and liability measurement principle, which uses residency as the main distinction between outward and inward investments.

Uncertainty around estimates based on Foreign Direct Investment Survey data

Production of estimates from the FDI Survey was temporarily paused at the end of 2023, because of previous challenges in processing FDI survey data. This pause has allowed us to review and revise procedures so that we can safeguard timely and quality FDI estimates in the future. We have now returned to full processing of survey data starting with historical time periods.

Estimates for Quarter 1 (Jan to Mar) 2025 are based on full processing of quarterly survey data.

For the 2024 estimates in this bulletin, FDI estimates for Quarter 1 (Jan to Mar) 2024 are based on full processing of quarterly survey data. However, the estimates for all quarters from Quarter 2 (Apr to June) 2024 to Quarter 4 (Oct to Dec) 2024 are based on quarterly survey data, but with simpler processing than normal.

Estimates for quarters in 2023 are based on full processing of survey data and reflect the latest data from the 2023 annual FDI Surveys. Estimates for quarters in 2021 and 2022 are based on full processing of survey data but have not yet been updated to reflect the latest data from the 2021 and 2022 annual FDI surveys. 

Timing for incorporating revised estimates for each period will be in line with our latest National Accounts Revisions Policy. Revised estimates for all periods from 2021 will be completed in the 2025 edition of Pink Book and Blue Book.

Changes affecting UK trade statistics

Data collection changes

Since the UK left the EU on 31 January 2020, the arrangements for how the UK trades with the EU changed. HM Revenue and Customs (HMRC) implemented some data collection changes following Brexit, which affected statistics on UK trade in goods with the EU. We have made adjustments to our estimates of goods imports from the EU in 2021 and 2022 to account for these changes, however, a structural break remains in the full time series for goods imports from and exports to the EU from January 2021.

We therefore advise caution when interpreting and drawing conclusions from these statistics. Our Impact of trade in goods data collection changes on UK trade statistics: summary of adjustments and the structural break from 2021 article provides more detail.

International Trade in Services estimates

From September 2025 until early 2027, International Trade in Services (ITIS) data (which accounts for approximately 50% of total trade in services) will be processed once each quarterly period. During this period, the data will be based on a robust survey response rate of approximately 60% to 70%.

This will enable more focus on improving processing systems and ensuring methods and quality in the future. Users should be aware that until September 2025, when estimates will be revised in line with the National Accounts Revisions Policy, ITIS-based estimates for the periods Quarter 4 2024 and Quarter 1 2025 are based on forecasts.

The International Passenger Survey (IPS), which is the source of travel services estimates (accounting for approximately 8% of total trade), is being transformed under ONS's Travel and Tourism project, and travel services estimates have been forecast since Quarter 1 2024. In the September 2025 Quarterly national accounts and Balance of payments, we will update Quarters 1 and 2 2024 to be based on survey data, while for later periods estimates will be forecast during the period of the Travel and Tourism transformation.

Quality and methodology

More quality and methodology information on strengths, limitations, appropriate uses, and how the data were created is available in our Balance of payments quality and methodology information (QMI).

We will continue to produce our UK balance of payments statistics in line with the UK Statistics Authority's Code of Practice for Statistics, and in accordance with internationally agreed statistical guidance and standards. This is based on the International Monetary Fund's Balance of Payments and International Investment Position Manual: Sixth Edition (BPM6) (PDF, 3.0MB), until those standards are updated.

Accredited official statistics

These accredited official statistics were independently reviewed by the Office for Statistics Regulation in December 2011. They comply with the standards of trustworthiness, quality and value in the Code of Practice for Statistics and should be labelled "accredited official statistics".