Unit 2 12.4b Current Account
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AS Macro - Current Account & Exchange Rates: Pound fears as current account deficit jumps to near 25 year high - Telegraph

AS Macro - Current Account & Exchange Rates: Pound fears as current account deficit jumps to near 25 year high - Telegraph | Unit 2 12.4b Current Account | Scoop.it
Britain’s current account deficit jumped to its highest level in almost a quarter of a century last year, leading analysts to suggest that the pound may need to fall further in order to get the British economy back to a sustainable path.

Via Saint Martin's - Economics
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Britain's current account deficit at worst level since 1989

Britain's current account deficit at worst level since 1989 | Unit 2 12.4b Current Account | Scoop.it
Collapse in overseas income pushes gap between imports and exports in 2012 to £57.7bn, a shortfall of 3.7% of GDP

 

"A collapse in overseas income has pushed the UK's 2012 current account deficit – the gap between imports and exports – spiralling to its worst level for more than 20 years, according to official figures.

The worsening situation in the eurozone helped Britain to a £57.7bn current account deficit, amounting to 3.7% of GDP, the biggest shortfall as a proportion of national income since 1989."

 

"The Office for National Statistics said 2012 ended on a low note after Britain registered a £14bn deficit in the last quarter, coming on top of a £15bn deficit in the previous quarter.

Analysts warned that a long-running sequence of balance of payments deficits, which goes back to 1984, had worsened with few signs of an upturn."

 

"The figures will prove a huge disappointment to the coalition government, and especially business secretary Vince Cable, who pledged to rebalance the economy away from consumer spending and banking towards exports.

A fall in the value of sterling by a quarter over the last four years was expected to boost exports and allow manufacturers to become a larger slice of the UK economy."

 

"In separate figures, the ONS confirmed that GDP contracted 0.3% in the fourth quarter of 2012, compared with the previous three months, putting the UK on course for a triple-dip recession."

 

"Samuel Tombs at Capital Economics, said: "The figures are a reminder of how much progress still needs to be made towards getting the economy back to a sustainable path – progress that might require a further drop in the pound.""


Via Global Geopolitics & Political Economy
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