Fears UK economy is in FREE FALL – but experts say risk of Brexit NOT to blame
BRITAIN’S trade gap has jumped to its highest level since 2008, fuelling fears the UK’s economy is in free fall – but experts have said the Brexit vote is not the cause.
By LANA CLEMENTS
Express.co.uk
Tue, May 10, 2016
During the first three months of the year, Britain imported £13.3billion more than it exported to the rest of the world, data from the Office for National Statistic (ONS) showed today.
The gap is now at its largest since the depths of the financial crisis.
It comes after the economy grew by just 0.4 per cent during the first quarter of 2016.
Commenting on the trade gap figures, Howard Archer, chief economist at IHS economics, said: “A truly horrible first quarter trade performance that clearly weighed down on GDP growth.”
He added: “UK exports have struggled in recent months, as they have clearly been hampered by moderate global demand.
“Sterling’s overall strength in 2015 (particularly against the euro) was also a problem for UK exporters, and there is likely still some lagged impact from that.”
It’s now expected the Bank of England will revise down its forecast for growth in 2016 when it releases its latest inflation report on Thursday.
George Osborne and political figures backing the Remain campaign have blamed the slowdown on the prospect of a Brexit.
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