§ Mr. Gouldasked the Chancellor of the Exchequer (1) what measures he proposes to take in order to stimulate export-led growth, given that the fall in the value of the £ sterling so far this year has not significantly improved the price competitiveness of United Kingdom exports;
(2) what effect the present level of price competitiveness for United Kingdom exports has on prospects of export-led growth.
§ Mr. Robert SheldonThe price competitiveness of United Kingdom exports has almost certainly improved markedly since the first quarter of this year and our prices are now highly competitive in world markets. In addition, the profitability of exports relative to home sales has probably increased substantially in 355W recent months. We are thus well placed to achieve export-led growth, provided that world trade grows at a satisfactory rate.
§ Mr. Gouldasked the Chancellor of the Exchequer what explanation he has for the small growth in the volume of United Kingdom exports this year, compared with the much faster growth in the volume of imports.
§ Mr. Robert SheldonExport volumes started growing in the autumn of last year, several months before import volumes. The recent pause in the growth of our exports is not easily explained; but reports from other countries suggest that something of the same kind has occurred elsewhere. It may be that world trade has been less buoyant than expected. The recent growth in import volumes probably contains an element of forestalling.