What excellent news

The UK\’s goods trade deficit climbed to its highest figure in more than 300 years in July, leading analysts to warn that the economy has fallen into recession.

A deficit in the goods trade balance (after adjustments for the services surplus of course) is obviously and clearly balanced by a surplus in the capital balance for of course the balance of trade does indeed balance.

Which means that even in this, the most difficult financial environment since, well, put in your own since when here, foreigners are happy to invest billions and billions every month in the UK economy.

Nice to have some good news occasionally, no?

4 thoughts on “What excellent news”

  1. But to get those funds flowing in the pounds has had to depreciate, to $1.69 today. Which means we are all poorer.

  2. ” . . .balance of trade does indeed balance..”

    I think you mean “balance of payments”

    Thanks Matthew for reminding us that every silver lining does indeed have a cloud although since the exchange rate is at $1.72 to the £ as I write, we’re all a bit richer again.

    Tim adds: Indeed I do mean that.

  3. let me get this straight..
    if you have a 10 percent trade imbalance you are winning ??
    if you have a 50 percent one,you hare even richer??

  4. you have a massive trade imbalance with every retailer you patronise, em. So lead by example and sort out your own trade imbalances first, chum

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