Skip to main content
BBC NEWS / BUSINESS
Graphics VersionBBC Sport Home
News Front Page | Africa | Americas | Asia-Pacific | Europe | Middle East | South Asia | UK | Business | Health | Science & Environment | Technology | Entertainment | Also in the news | Have Your Say |
Business Contents:  Your Money | Economy Companies

Thursday, 20 December 2007, 11:13 GMT

Key UK deficit widens to record

Money The UK's current account deficit, a key economic indicator, widened to a record level in the three months from July to September, official data shows.

The deficit was £20bn, or 5.7% of gross domestic product, compared with £13.7bn in the previous three months, the Office for National Statistics said.

Analysts also voiced concerns about the record level of government borrowing.

The data is evidence of a "dangerously unbalanced economy", according to Jonathan Loynes of Capital Economics.

In a monthly report on government financing, the Office for National Statistics said that public sector net borrowing hit a record £11.21bn in November.

"How does this play into the fragile state of our economic nerves?"
Evan Davis,
BBC economics editor

Read Evan's thoughts in full
Evan Davis

Mr Loynes added that the borrowing figures suggested that the government was on track to overshoot its pre-Budget report forecast by at least £5bn this year.

"Overall, a pretty ugly picture, supporting our view that the coming economic slowdown will be a prolonged period of adjustment rather than a short pause for breath like that seen in 2005," he explained.

"What is really shocking about these figures is that they reveal that the Exchequer was running a large current deficit before the credit crisis hit home, when the economy was doing very well and it should have been showing a large current surplus," said Professor Peter Spencer, chief economic advisor to the Ernst & Young Item Club.



E-mail this to a friend

RELATED INTERNET LINKS
Office for National Statistics
The BBC is not responsible for the content of external internet sites



SEARCH BBC NEWS: 

News Front Page | Africa | Americas | Asia-Pacific | Europe | Middle East | South Asia | UK | Business | Health | Science & Environment | Technology | Entertainment | Also in the news | Have Your Say |
Business Contents:  Your Money | Economy Companies

NewsWatch | Notes | Contact us | About BBC News | Profiles | History

^ Back to top | BBC Sport Home | BBC Homepage | Contact us | Help | ©