Balance of Payments

HC Deb 16 October 1973 vol 861 c58W

Mr. Sillars

asked the Chancellor of the Exchequer if he will make a statement on the size of the balance of payments deficit.

Mr. Nott

The current deficit in the first nine months of the year amounted to about £700 million, seasonally adjusted. The main factor in the deficit has been the deterioration in the terms of trade; but these should improve when the rate of increase in world commodity and food prices slackens. Furthermore, the volume of exports has been rising faster than the volume of imports: in the first eight months of 1973 export volume rose 21 per cent. at an annual rate on the last half of 1972, while import volume rose 16 per cent. Invisible earnings continue buoyant.