The weak pound and high oil prices: the British economy is mired in import

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The UK trade balance with other countries deteriorated in December. The reason for the decline is the rise in oil prices, which increased the cost of fuel imports. Also has a negative impact on imports and the continued weakening of the national currency.

As reported by the Office for national statistics, the difference between exports and imports of goods and services in the UK in December last year increased by £1.2 billion to £4.9 billion Despite an increase in exports, it grew by only half that rate of import growth.

According to economists, this imbalance will allow us to hope that the economy preoriented on the consumption of goods and services produced in the UK. While this situation is unlikely to please the Ministers and politicians who affirm the need to expand trade with other countries amid the United Kingdom from the European Union.

British economist from the consulting firm Macroeconomics Samuel Tombs (Samuel Tombs) stressed that British manufacturers are not particularly benefit from the devaluation of the pound sterling. They acquire raw materials in all countries of the world, and with the fall of the pound their costs on such purchases, has increased significantly.

Note that these are not the most encouraging data came after the Bank of England published positive news about the state of the British economy.

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