Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Trade deficit widens with fall in export volumes

by April 14, 2023
April 14, 2023
Trade deficit widens with fall in export volumes

The trade deficit widened in February as export volumes declined to more than 9 per cent below the 2019 pre-pandemic average.

Exports fell to a greater extent than imports, pushing the deficit to £4.8 billion in February, up from £3.5 billion in January, according to figures published by the Office for National Statistics. The average deficit in the 2010s was £2.8 billion.

While high fuel prices are still the main driver of the shortfall, the broader trade deficit in goods also increased, with Britain following an opposite trend to its “advanced” economy peers after Brexit. Real goods exports, excluding so-called erratics, were 12.2 per cent below their 2018 level in the UK but were 3.9 per cent higher on average across the country’s closest competitors, figures from the Netherlands’ statistics office show.

The ONS estimates that the damage from Brexit is likely to have been even larger than the trade figures suggest because changes in its data collection methods have boosted present trade data relative to how the numbers would have been measured before 2022.

The trade in fuels deficit rose to £4.3 billion in February, up from £4 billion in January, compared with an average of £3.4 billion over the previous two years. Although the UK exports gas, the value of this is dwarfed by the value of gas imports, meaning that the surge in natural gas prices since the pandemic has significantly widened the deficit.

However, some forecasters expect a narrowing of the trade deficit during this year as gas prices continue to fall. Gabriella Dickens, at Pantheon Macroeconomics, the consultancy, said: “The underlying trade deficit looks set to narrow this year, in part due to the recent sharp drop in wholesale gas prices. Futures prices suggest the monthly trade deficit in natural gas will be only around £1 billion higher than normal in the second half of the year.”

The trade deficit with the European Union is also likely to decline, given that the outlook for the British economy is more gloomy than that on the Continent, which would be good news for exports, Dickens said.

Nevertheless, Brexit would keep exports subdued as UK exporters struggle with red-tape and additional checks, she added. “We think the trade deficit will narrow to about £65 billion in 2023, compared with £86.6 billion in 2022, but will remain well above 2021’s £28 billion,” she said.

Read more:
Trade deficit widens with fall in export volumes

0
FacebookTwitterGoogle +Pinterest
previous post
2 in 5 mothers say high costs are still keeping them out of the workplace
next post
Unemployment must be higher to keep a lid on inflation, Bank of England’s Huw Pill claims

You may also like

Information commissioner warns firms over ‘emotional analysis’ technologies

October 26, 2022

Hotel Challenges in the modern world and how...

August 15, 2023

Hybrid Work Trends 2023

November 25, 2022

10,000 small business leaders enrol in government-backed management...

December 13, 2024

Nigel Farage to Stand as MP in Clacton,...

June 3, 2024

Getting to Know You: Kashane Walters, Finance Manager

November 16, 2022

Low Investment Blocking UK Growth, Says Think Tank

June 19, 2024

Connecting The Dots: How Interoperability Enhances Business Efficiency

February 19, 2024

Top Challenges in International Debt Collection and How...

January 20, 2025

Black Friday causes heightened anxiety for almost 70%...

November 23, 2023

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Trump warns of ‘serious consequences’ if Elon Musk funds Democrats

      June 7, 2025
    • Musk jokes about reconsidering stance on Big Beautiful Bill after Schiff’s praise

      June 7, 2025
    • Musk deletes explosive posts about Trump and Epstein files

      June 7, 2025
    • House witness flips script on Dem who ambushed him during hearing with unearthed tweet: ‘Iceberg is ahead’

      June 7, 2025
    • Call with China’s Xi, and Trump-Musk exchange fueled barbs during 20th week in office

      June 7, 2025
    • Trump’s conservative allies warn Congress faces critical ‘test’ with $9.4B spending cut proposal

      June 7, 2025

    Categories

    • Business (8,152)
    • Investing (2,019)
    • Politics (15,568)
    • Stocks (3,136)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved