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Will the big current account deficit cause a problem?

Were the UK an emerging market the hedge fund vultures would already be circling following the rise in the current account deficit to 4% of GDP last year – the largest in the developed world. While the UK won’t have an emerging-markets style balance of payments crisis, the deficit isn’t going to go away. The upshot is that another substantial fall in the pound is likely sometime within the next five years.

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