§ Mr. Austin MitchellTo ask the Chancellor of the Exchequer what assessment he has made of the effect of the increase in the nominal and real exchange rate against the deutschmark and the ecu since February 1993 on the: balance of trade in manufactures; and what contribution that has made to the economic growth.
§ Mr. Nelson[holding answer 8 December 1994]: The Government's most recent assessment of trade performance is published in chapter 3 of the "Financial Statement and Budget Report", in which it is explained that the United Kingdom's cost competitiveness has 403W largely been maintained as a result of British industry's success in controlling costs. Net trade accounts for about half the growth of gross domestic product in 1994 so far.