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Uk Trade Gap Hits Record In 2005

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The gap is equal to 2.6% of GDP, much higher than the £23.6bn reported in 2004 and is the worst since records began at the end of World War II.

Yeah, but Gordon reckons we're going have lots of lots of exports soon. Or something. We have to, otherwise the economy is in a right mess.

I am sure Gord will see us through.

A weakening pound will just make it worse.

Yeah, but that won't lead into more inflation or anything 'cos Gordon has tamed inflation.

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Actually, if u think the UK economy is fooked, u oughta take a lok-see at the Italian economy!

What’s up with the Italians then – are they not exporting enough pasta – have they got into even larger debt?

tell us the way - if they acn do it then the uk can follow

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So, trade gap is 2.6% of GDP, an historic high for the UK.

Can someone remind me what it is in the US?

Cheers

No, but I can tell you that

NZ trade gap is $13.7 billion, or 8.9 % of GDP, in 2005.

:blink:

Do we win a prize?

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No, but I can tell you that

NZ trade gap is $13.7 billion, or 8.9 % of GDP, in 2005.

:blink:

Do we win a prize?

8.9%!!!!!

that is crazy

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A weakening pound will just make it worse. [newbie]

Yes, when a currency falls the trade balance initially gets worse before improving due to increased sales of cheaper exports and substitution of more expensive imported goods. This is known as the J-Curve:

http://www.economist.com/research/Economic...fm?TERM=J-CURVE

The shape of the trend of a country’s trade balance following a DEVALUATION. A lower EXCHANGE RATE initially means cheaper EXPORTS and more expensive IMPORTS, making the current account worse (a bigger DEFICIT or smaller surplus). After a while, though, the volume of exports will start to rise because of their lower PRICE to foreign buyers, and domestic consumers will buy fewer of the costlier imports. Eventually, the trade balance will improve on what it was before the devaluation. If there is a currency APPRECIATION there may be an inverted J-curve.

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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