There is a deficit of £391 million on the current account of the balance of payments in the first quarter of the year, compared to £199 million in the same period of 1996, according to the latest figures from the Central Statistics Office. An increase in outflows under the heading of "factor incomes", which includes the profit repatriations of multinational companies, was responsible for the higher deficit. Outflows under the same heading rose from £1.46 billion in the first quarter of last year to £1.749 billion in the same period this year.

The current account is normally in deficit in the first quarter because of seasonal trends, and forecasters still expect a healthy surplus for the full year. Bloxham stockbrokers forecast a £700 million surplus (1.7 per cent of GNP), compared to £862 million (2.3 per cent of GNP) last year.