08.08.2014 - UK trade deficit increased

UK's trade deficit rose amid a more rapid decline in exports than imports. Thus, the deficit rose in June to 9.4 billion., compared with an expected decline to 8.9 billion. Greatest decrease in exports showed production of energy, aircraft and shipbuilding. At the same time, the maximum reduction in imports was recorded in the fuel.

It is worth noting that the economy continues to recover rapidly, as GDP growth is expected at 3.2%, and the Bank of England may raise interest rates as early as the end of this year or at the beginning of 2015 if unemployment continues to decline which is a key factor that indicates the stability of economic growth. Despite the decline in price the British pound in recent times, we expect that after the referendum on Scottish independence in September, growth will resume.

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