Trade deficit in UK has touched a record height of £ 1.6 bn that is quiet high from the last month’s trade deficit- 885 m as per the National Statistics of London. After getting into perfect slice comparison- a thing is clear; Deficits in goods trading is more than the actual deficit. £ 7.6 bn surplus in service sector has offset a part of huge- £ 9.2 bn deficit in goods trading sector.
Export-Import Balance | Recovering Slowly
Exports has fallen by a little margin, it shows a clear picture of a weaker demand in the Eurozone. Deficit in export has been growing sharply since February, this year. But this quarter’s (second) trade deficit is lower than the record one in the first quarter that was of £ 7.5 bn.
A chief economist of Manufacturing group EEF, said a important thing in this regard- “Weaker demand in Eurozone is of-course a reason behind the slide down of the trade gap, but domestic consumption has also decreased with a large margin in last few months. Though state is hammering for more production, without demand price will fall sharply if same condition prevails in Eurozone for long time”.
Imports Gone Higher as Eurozone got weaker
Gross domestic production may go down if the above stated incident happens. And it will affect all sectors. A risky margin can show us the clear image of the current position- Total goods imports touched £ 34.1 bn while the exports totalled £ 24.9 bn. UK imports a large portion from Germany in this quarter- about £ 5.34 bn and exports only £ 2.7 bn. US is the biggest export zone of UK, that market has gone weaker also. An interesting fact is that- China is one of the biggest export markets of UK! In all over the world we know China as exporter.
UK has hit hard by the Eurozone’s turmoil. Eurozone’s central bank has already nodded for a bailout fund for Greece to protect the group of Euro zone after a couple of rounds of discussion with Greek authority. After release of the fund, new fund influx in all the other countries shrinks. It passively affects UK’s economy also as its man export zones are Germany, Netherland, France, Italy etc.
After publishing the trade gap, some companies have postponed share trading because they are in fear of losing money due to devaluation of Pound if this thing continues for a month next. UK ministry of commerce has called an urgent meeting in this regard.