Wednesday, March 11, 2009
No time to be an exporter
Posted by David Smith at 10:00 AM
Category: Thoughts and responses

The improvement in Britain's trade position that will result from sterling's fall is not happening yet; indeed the movement so far is arguably in the opposite direction, though some of this could be the "J-curve" effect. The latest figures show that the overall trade deficit widened from 3.2 billion to 3.6 billion between December and January, while the deficit in goods alone increased from 7.2 billion to 7.7 billion. More details here.

This is a bad time to be an exporter. China's exports in January were down by a huge 25.7% in February. Britain's exports, by comparison, showed a 10.3% volume fall in the three months to January compared with a year earlier, while imports were down by 12%.