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UK Exports Surge, Trade Gap Narrows Following Brexit Vote

By Sanne Wass, Global Trade Review Sep 20, 2016

The UK’s deficit on trade in goods and services narrowed by £1.1bn in July, official figures reveal, giving renewed hope to British exporters in the wake of the Brexit vote.

According to the latest data from the Office for National Statistics (ONS), the UK trade deficit fell from £5.6bn in June to £4.5bn in July 2016. The narrowing trade gap was driven by a boost in British goods exports, which jumped by £0.8bn, or 2%, while imports dropped by 3.6%. The figures reflect a rise in the export of ships and fuel, and minor increases in food, beverages and tobacco and machinery, the ONS says.

The plunge in the value of the pound following the UK’s vote to leave the EU on June 23 seems to have been helping British exporters. In July 2016, the sterling Exchange Rate Index (ERI) was 15% lower compared with the same period last year, making UK goods more competitive on the global market.

Read Full Article on Global Trade Review »