UK trade deficit plummets to nine-year low as imports take a sharp tumble
IMPORTS fell sharply in December and exports expanded slightly, taking the UK’s trade deficit to its lowest level since 2003, figures from the Office for National Statistics (ONS) showed yesterday.
The deficit in goods and services fell to £1.1bn for the month, compared with £2.8bn in November.
In goods, the deficit fell from £8.9bn to £7.1bn, and the services surplus declined slightly from £6.1bn in November to an estimated £6bn in December.
Exports of oil to countries including France were largely responsible for the rise, while imports of chemicals fell £0.6bn and oil and precious stones fell £0.4bn.
“Although the deterioration in growth prospects in the Eurozone at the end of 2011 has been widely blamed for the weakening in the UK’s own prospects, exports to the euro area held up relatively well,” said Barclays Capital’s Chris Crowe.
“In fact, the Eurozone has more reasons to worry about the UK’s weak growth prospects harming its recovery, as the UK’s imports from the Eurozone declined by 4.2 per cent on the month, or 0.7 per cent quarter on quarter.”
The goods deficit with non-EU countries fell from £5bn in November to £3.7bn in December, compared with £5.7bn in December 2010.