Mubasher: The UK current account deficit, which gauges the cross-border transactions with the rest of the world, shrank during the second quarter of this year, from the prior quarter.

The deficit reached GBP 25.2 billion ($30.99 billion) or 4.6% of the gross domestic product (GDP), in Q2-19 shrinking by GBP 7.9 billion, data by UK’s Office for National Statistics (ONS) showed on Monday.

This was mainly ascribed to the declining total trade gap, which came in at GBP 11.4 billion, or 2.1%, as imports returned to their normal levels.

Between April and June, the UK net liabilities declined to GBP 302.1 billion, compared with GBP 350.6 billion in the period between January and March.

The primary income shortfall expanded by GBP 3.7 billion to GBP 7.1 billion, which accounts for 1.3% of GDP in the second quarter, owing to rising payments to foreign investors on their direct investments.

Financial account posted GBP 21.1 billion in net UK-bound inflow during the quarter, rising from GBP 15.1 billion in the preceding quarter.

By 8:40 am GMT, the GBP/USD went up by 0.13% to $1.2308, while the EUR/GBP went down by 0.13% to GBP 0.8886.