Commenting on the UK trade figures for October published today by the ONS, David Kern, Chief Economist at the British Chambers of Commerce (BCC) said:
“These figures are slightly disappointing as the global trade deficit was larger than expected. Although the value of exports is high, the underlying volume was lower, while underlying imports rose strongly.
“The Government must make sure that British exporters are not placed at a competitive disadvantage in important areas such as short-term trade finance. On their part, British exporters must make every effort to diversify into fast-growing emerging economies such as India, China and Brazil.”
“Although longer-term comparisons still show satisfactory growth in exports, the pace of recovery is inadequate. The strong recovery in manufacturing output we have seen recently has not yet been translated into a corresponding improvement in our trading position. With the forthcoming spending cuts set to dampen domestic demand, a major improvement in our exports will become a key element in any sustainable recovery. The UK economy will risk stagnation and even decline without a major improvement in international trade.