The trade gap for goods in the United Kingdom with the rest of the world has widened by £1.9bn, taking the gap top a record high of £125bn in 2015, official figures indicate.

The Office for National Statistics has warned that these recent figures will more than likely have a negative impact on its 2nd forecast of  economic growth for the fourth quarter.

However, 2015 saw a record surplus in the UK’s services sector of £90bn.  As a consequence that means that the UK’s total trade gap widened by just £300m last year.

The overall deficit – the difference between the amount the UK imports and what it exports – stood at £34.7bn in 2015, the ONS said.

The second estimate of fourth-quarter economic growth will be published on 25 February.

The goods deficit fell to £9.9bn from £11.5bn in November, but that was thanks to a fall in imports of £1.7bn in December rather than an increase in exports.

A large part of the drop is believed due to depressed oil prices, which meant the cost of oil imports fell in value terms to their lowest level since February 2009.


Source:  BBC Business News