Presently, the waves of bad news are as relentless as biblical plagues. The latest trade figures show that Britain’s trade gap opened in December; the seasonally adjusted deficit stood at £9.2bn, a rise from £8.5bn in November.
There are plenty of explanations as to why the export-led recovery failed to jump customs, despite the comparatively weak pound. The various acts of God couldn’t have helped and the continuing financial crisis on the continent will have further eroded demand.
However, the government will realise that these figures indict its growth strategy. As the ONS graph below indicates, the trade deficit is a persistent problem and one feared by the British Chambers of Commerce.
In addition to further liberalising Europe and redressing domestic regulatory impediments, it is vital that Britain develops deeper and closer relationships with alternative markets to the European Union, upon which we are too dependent. The government has been proactive:
Comments
Join the debate for just $5 for 3 months
Be part of the conversation with other Spectator readers by getting your first three months for $5.
UNLOCK ACCESS Just $5 for 3 monthsAlready a subscriber? Log in