Trade and the Balance of Payments

摘要

1. Though competitiveness has been boosted by the sharp decline in the value of sterling, this has been more than offset by the impact of weak global demand. The pound has tumbled in recent weeks, almost reaching parity with the euro, but sterling has been falling against both the euro and the dollar for much of the past eighteen months. Since mid-2007 it has fallen by 30% on a trade-weighted basis, yet trade performance has been relatively unimpressive; export volumes were up just 0.1% in 2008Q3 compared with a year earlier.rn2. The UK current account deficit widened to £7.7 billion in 2008Q3, the largest deficit for three quarters, as lower exports of services were compounded by falling income from investments abroad.