Balance of Trade

HC Deb 21 April 1993 vol 223 c117W

33. Mr. Grocott

To ask the President of the Boa rd of Trade what recent assessment he has made of movements in the United Kingdom's balance of trade during the past 14 years.

Mr. Needham

The United Kingdom current account deficit as a percentage of GDP has averaged 0.6 per cent. over the last 14 years.

In 1992, the United Kingdom had a current account deficit of £11.8 billion, equivalent to 2.3 per cent. of GDP. The deficit has been falling since 1989, when it peaked at 4.9 per cent. of GDP.

The recent sterling depreciation gives United Kingdom producers a competitive edge against foreign producers in both export and domestic markets, provided they keep costs down and continue to raise their quality.