EconoMonitor

Better News on UK Trade

Just when it was needed, news of a better performance on Britain’s overseas trade, with the deficit narrowing to £1.9 billion in August, from £2.3 billion in July and £3.6 billion in August 2010. It may be premature to talk of a rebalancing spurt but it is welcome.

This is the ONS’s summary: “The UK’s deficit on seasonally adjusted trade in goods and services was £1.9 billion in August, compared with a deficit of £2.3 billion in July. The deficit on trade in goods was £7.8 billion, compared with a deficit of £8.2 billion in July. The surplus on trade in services was estimated at £5.9 billion, unchanged compared with July. The volume of seasonally adjusted exports of goods was 1.3 per cent higher, and the volume of imports was 0.3 per cent higher than in July. Export prices of goods fell by 1.5 per cent and import prices fell by 0.5 per cent compared with July.” The release is here.

This post originally appeared on David Smith’s Economics UK and is reproduced here with permission.

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Thomas Grennes is a professor of economics at the North Carolina State University and a former visiting faculty member at the Stockholm School of Economics in Riga. His research has dealt with various aspects of international economics, including open economy macroeconomics, international finance, and international trade in agricultural products. Recent research topics have included macroeconomic aspects of the Great Moderation, offshore outsourcing, sovereign wealth funds, and the relationship between government debt and economic growth. Earlier work dealt with emerging market issues in the Baltic countries and Russia and trade and macro policies in Sub-Saharan Africa. Economic history topics include the Columbian Exchange of plants and animals, the effects on food markets of introducing mechanical refrigeration, and the integration of Tsarist Russia into the world grain market. When he is not involved in economics, he enjoys mountain hiking.

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