UK trade deficit with EU hits 23.9 billion pounds

UK trade deficit with European countries hit its anti-record and sharply rose. This fact will be used by Brexit supporters for agitating before the referendum.

According to figures released in previous week, import from the EU exceeded export by 23.9 billion pounds. It is the most significant deficit for one quarter since 1998.

UK export fell in QoQ, while import rose, which reflects higher demand for services and goods to other countries. Number of imported cars, equipment, and goods, produced in factories of chemical industry, significantly rose, while export of oil, metals, and air transport fell.

Brexit supporters say these data show that the country will reach its target level in case of exit from the EU, as the European companies don’t want to lose such a significant market.

Opponents of Brexit say in this case that the UK economy is based on trading with the Europe. Export in the EU takes a half of all export. There are no guarantees that the EU will agree a free trading or allow the UK to trade in market without strict limits after exit.

The ONS notes that total trade deficit in previous quarter hit 13.3 billion pounds, which is a maximum since 2008.