Exporters face trouble from a 1970s revival
Article Abstract:
The United Kingdom trade deficit may have risen to over 2 billion pounds sterling in Feb 1999, and could have reached record levels for the three months to April 1999, yet pound sterling is still strong. Imports have not dropped significantly due to the strength of economic growth. The trade deficit is reduced after unemployment has risen, and the level of unemployment that triggers an improvement in the trade deficit is falling, after having risen during the 1980s. An increase in returns on capital may also help in the funding of a trade deficit. The pound could drop, but there is not certainty that it will drop sharply over the short term.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1999
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Mind the gaps
Article Abstract:
The United Kingdom is likely to announce a large currenct account surplus in Dec 1997. This looks set to be the biggest surplus since 1983, but is likely to become a deficit in 1998 due to the high value of pound sterling. The current account represents the difference between investment and savings, and a surplus results when savings are greater than investment. The government is increasing taxes and reducing spending in 1998 so the deficit is likely to be small. Investment may rise, but personal sector savings should remain high, which will also limit the deficit. A small deficit is also likely to mean less inflationary pressure.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1997
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No disaster
Article Abstract:
US economic growth is slowing down, and the impact on the UK economy may not be as bad as is feared by some analysts, according to HSBC Greenwell, a UK broker. The impact on the UK balance of trade may not be apparent until the middle of 1996, since there are time lags involved. The UK's balance of payments has been improving, but the impact of a US slowdown would not halt this improvement, though there would be some effect. There may also be benefits as inflationary pressure is reduced.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1995
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