The Office for National Statistics said that the underlying UK current account deficit excluding non-monetary gold and other precious metals narrowed to £12.7 billion, or 2.3% of gross domestic product (GDP) in Quarter 1 (Jan to Mar) 2021.

In Quarter 1 2021, the total trade deficit excluding precious metals narrowed by £9.5 billion as imports of goods fell more than exports.

The primary income deficit widened to £8.6 billion or 1.6% of GDP in Quarter 1 2021 from £5.0 billion in Quarter 4 (Oct to Dec) 2020; this was because of a larger increase in payments to foreign investors on their UK investments.

The secondary income deficit narrowed as the UK's regular monthly payments to the EU stopped with effect from January 2021.

Financial flows decreased in Quarter 1 2021 with a net inflow to the UK of £28.5 billion, as non-residents continued to invest in UK equities and debt securities.