The UK Trade Deficit Narrows

A record jump for Britain’s products exports helped the country’s trade deficit fall more than expected in April. The trade figures showed that the United Kingdom's economy had steadied ahead of the EU referendum, following a wobble in the first three months of the year.

Exports of British-made goods to the EU increased by 10.3% compared with a year ago while non-EU exports nudged just 1.9% higher.

However, in April alone exports to the rest of the world performed better after a £1.3bn jump to a record £14bn, compared with a £900m rise in exports to the EU.

The latest figures also ease concerns after last month’s figures showed Britain’s trade deficit with other EU countries was running at a record high. Britain’s current account deficit, which reflects the trade gap with the rest of the world and the shortfall between money paid out by the UK and money coming in, is one of the biggest in the world.

The rise in the deficit to almost 7% in March was seized on by campaigners for Britain to remain in the EU, who argued it would only worsen if Britain quit the single market. Brexit supporters have argued that bringing down trade barriers outside the EU would increase exports to the rest of the world.


Source:
https://www.theguardian.com/business/2016/jun/09/uk-trade-deficit-falls-after-record-rise-in-exports