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Chart of the Day: United Kingdom's Achilles' heel

Source - Bank of England

As of 2016, the United Kingdom's current account deficit has reached more than 7 percent of the GDP. However, the Kingdom can easily finance its deficit through its large capital account surplus and positive Foreign Direct Investment (FDI).

The real question the economy is facing is that can it continue to receive FDI and post capital account surplus even if it exits the European Union.

Chart courtesy - Financial Stability Report, Bank of England

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