Britain’s current account deficit at worst level since 1989
The news today about the significant challenge of recapitalising the banks made me reflect that perhaps I had no idea of how seriously precarious things really are. This article gives me more cause for economic disquiet. I really do worry about the future of rural places in the context of the fuel, housing and employment challenges we seem to have no resources to address. Perhaps I need a rest over Easter in the interests of returning in a more optimistic frame of mind. Anyway the article itself explains:
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.