Original Link: http://www.bloomberg.com/news/2012-04-12/u-k-trade-gap-widened-as-car-exports-dropped-to-u-s-china.html
Reported by the Bloomberg, the U.K. has seen a widening trade deficit in the first quarter of the year, especially as the car exports to the U.S. and China drops. Given a weak domestic economy, with a high rate of unemployment and rising inflation, the U.K. is hoping to boost its economy with expanding exports. However, its trade with countries outside the European Union has not demonstrated promising outcome. Prime Minister David Cameron has come to Asia in April in an attempt to boost commercial ties with the region.
The declining exports are attributed to a weak global economy, with the demand on the cars and heavy machinery market shrinking. In addition, starting from the beginning of 2012, the GBP has appreciated against the USD consistently, from below 1.53 GBP/USD to its current level of around 1.6155 GBP/USD. A stronger GBP tenders british goods more expensive, which reduces demand from foreign consumers and thus, exports.
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