Lodi Valley News.com

Complete News World

UK records largest trade deficit in 6 months

UK records largest trade deficit in 6 months

The UK trade deficit narrowed to GBP 1.52 billion in April 2023, the smallest difference since last October, as exports rose 1.3% and imports fell 0.6% to a 16-month low.

This information was released by the country’s Office for National Statistics (ONS) on Wednesday.

In exports, sales of goods to non-EU countries increased by 7.3%, mainly due to strong increases in exports of machinery and transport equipment, mainly machinery to New Zealand and strong increases in exports of automobiles to China.

Additionally, sales of chemicals and materials manufacturers saw a significant increase. On the other hand, exports to the EU declined by 0.5% due to declines in sales of various manufactured goods and food and live animals.

Meanwhile, EU imports fell by 3.6%, mainly due to lower purchases of chemicals such as organic chemicals from Ireland and pharmaceuticals and pharmaceutical products from Belgium.

There was also a fall in imports of other products from the Netherlands, including other manufactures and scientific instruments. Imports from non-EU countries increased by 1.3%.

Check the key points:

  • The value of goods imports fell by £0.7 billion (1.4%) in April 2023; Excluding the effect of inflation, imports of goods fell 0.4%;
  • The value of merchandise exports increased by £1.0 billion (3.4%) in April 2023; After removing the effect of inflation, merchandise exports increased by the same amount;
  • Both imports and exports of goods saw an increase in trade with non-EU countries, while trade with EU countries declined in April 2023;
  • Despite the narrowing of the gap in April 2023, imports from EU countries continue to exceed those from non-EU countries from the end of 2022;
  • The aggregate trade deficit for goods and services narrowed to £12.6 billion in the three months to April 2023 compared with the three months to January 2023, driven by a larger fall in imports than exports.
  • The trade deficit for goods narrowed by £10.7 billion to £52.5 billion in the three months to April 2023, while the trade surplus for services widened by £1.9 billion to £40.3 billion.
See also  Scholarships in UK: Applications open this week