BCC: Growing trade deficit highlights challenges facing UK exporters
8/08/2014
The UK deficit on trade in goods and services was £2.5bn in June 2014, compared with £2.4bn in May 2014
- There was a deficit of £9.4bn on goods, partly offset by a surplus of £7.0bn on services
- Exports and imports of goods both fell in June but a decline in exports was greater
- The UK trade deficit has grown from £5.5bn in Q1 2014, to £6.9bn in Q2 2014
Commenting on the UK trade statistics for June 2014, published today by the ONS, David Kern, Chief Economist at the British Chambers of Commerce (BCC) said:
“It is disappointing that the trade deficit widened again in June. While the decline was only slight, the increase in Q2 could partly reverse the improvements seen in the previous two quarters. Weaknesses in the global economy are still a problem and the challenges facing UK exporters are being made even greater by the strengthening pound.
“These figures confirm that the pace of the UK’s rebalancing towards net exports is far too slow, and if this continues we risk missing out on the Prime Minister’s target of increasing exports to £1tn by 2020. If we in Britain are serious about rebalancing our economy, we must invest even more in supporting and promoting international trade. On its part, the MPC must resist calls for early interest rate rises and reassure businesses that when rates start rising, increases will be modest and gradual to avoid any unwelcome surprises.”
Ends
Notes to editors:
ONS: http://www.ons.gov.uk/ons/rel/uktrade/uk-trade/june-2014/stb-uk-trade--june-2014.html
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020 7654 5813
Export Britain, the online export support resource from the British Chambers of Commerce, showcases opportunities in key international markets, and links UK exporters to support available from British Chambers and business groups both in the UK and around the world.
Export Britain helps businesses to make new connections overseas by drawing on the power of the global network of British Chambers and business groups. The site also helps growing and prospective exporters navigate through the export journey by signposting the support available every step of the way, as well as providing information on export training and documentation, events and trade missions, and inspiring case studies featuring successful UK exporters.
The British Chambers of Commerce (BCC) sits at the heart of a powerful network of 52 Accredited Chambers of Commerce across the UK, representing thousands of businesses of all sizes and within all sectors. For more information visit: www.britishchambers.org.uk
Publications
BCC International Trade Survey 2014
The latest International Trade Survey undertaken in Q1 2014, received responses from 4,742…
