UK Trade Deficit in Goods Reaches Record High in August

According to the UK Office for National Statistics, the UK's trade deficit hit a record high of 14.2 billion GBP.

MOSCOW (Sputnik) – The UK trade deficit hit a record high of 14.2 bln GBP ($18.7 bln), as the United Kingdom exported 28.2 bln GBP in goods and imported 42.4 bln GBP in August, the UK Office for National Statistics (ONS) said on Tuesday.

In October 2016, the ONS forecast that the drop in the pound's value following the Brexit referendum would, on the one hand, decrease imports of foreign goods and, on the other hand, increase export sales. It was expected that the growing exports would enhance economic growth, employment and living standards in the country.

However, the data released in the latest statistical bulletin showed that the trade balance had worsened over the month, with the value change growing by 1.4 billion pounds compared to July. Furthermore, in the three months to August, exports fell by 2.7 percent, while imports grew by 3.9 percent.

The report also revealed an increase in imports of chemicals, machinery and textiles, while exports of fuels dropped.

In early August, the UK Liberal Democrats party urged additional support for UK exporters, as statistics showed a growing trade deficit, while Brexit uncertainty and import costs balanced out the advantages that could be gained by the fall of the pound.

Brexit negotiations officially started in June, and are due to be completed by late March 2019. The talks on the United Kingdom's withdrawal from the bloc are held in one-week rounds on a monthly basis. Last week, EU Chief Brexit Negotiator Michel Barnier noted the lack of sufficient progress in the ongoing negotiations.