The changing nature of the UK's trade deficits, 1985-2008

Valerie Fender
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Valerie Fender: Office for National Statistics

Economic & Labour Market Review, 2010, vol. 4, issue 1, 18-24

Abstract: This article considers changes in the nature of the balance of trade between 1985 and 2008. The first section examinesthe theories behind trade and the position of the UK relative to its trading partners. Periods of deficit and surplusbetween these dates are then analysed individually, drawing comparisons. Lastly, the composition of the balance of trade ineach period and the fundamental reasons driving either the surplus or deficit are discussed. The analysis concludes thatthere are some fundamental similarities between the causes of each trade deficit, although there have also been largestructural changes in the composition of UK exports and imports due to developments in the global economy.

Date: 2010
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