The trade deficit for the U.K. rose to the largest amount on record in the last month of 2010 as harsh winter weather weighed on export activity, according to The Wall Street Journal. On Wednesday, the Office for National Statistics reported that the U.K.’s trade deficit with the rest of the world grew to £9.2 billion dollars in December from £8.5 billion previously. The level was the highest monthly deficit on over 30 years of records, and far outpaced estimates for a small increase to £8.6 billion.
The big increase in the deficit was driven by a big jump in overseas aircraft imports, which sent imports overall up by 3.5% compared to only a 1.5% increase in exports during December. The U.K. government announced on Wednesday that it would launch new export trade-finance initiatives to assist small businesses in accessing international markets. The move is expected to shift the focus of U.K. Trade and Investment to opening business opportunities in emerging markets, which are seen as a key to stronger export growth.
Click here to read the story on the budget deficit from The Wall Street Journal.
Click here for coverage of the business support from The Wall Street Journal.