12 March 2009

British Pound Not Aiding UK Trade

UK trade deficit is increased as exports fall sharply. Latest figures show that the country's exports to non-EU countries are down by nearly 16 per cent. Many had hoped that the British Pound's weak status would help countries to buy UK goods but this is clearly not the case.

The same situation is being felt worldwide, and the IMF are being called upon to increase aid to those countries who had hitherto been not just the bread and butter but also the main importers of British goods. In the USA, the Treasury is also calling for more aid injections to poorer nations.

There are some who believe that if both imports and exports were to fall over a year period, then the trade deficit weighing on the UK would shrink. But surely it will be some months before the situation betters itself - because key markets are just not showing demand, on a global scale.

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