The Other U.K. Deficit Is Starting to Concern Economists
An employee fits a winged 'B' emblem to the hood of a Bentley Mulsanne automobile at the Bentley Motors Ltd. workshop in Crewe, U.K.
Photographer: Simon Dawson/BloombergThis article is for subscribers only.
U.K. economists are increasingly pessimistic about the hole in Britain’s finances. And this time, government spending isn’t the focus.
They’re looking at the current-account deficit, the difference between money paid into the U.K. and money sent out. This shortfall as a share of gross domestic product will reach 4.4 percent this year, according to a Bloomberg News survey published Tuesday. Last month, they were forecasting 4.1 percent. A year ago, their estimate for 2015 was just 2.5 percent.