Yesterday’s trade figures show that the trade deficit for goods and services hit £4.8 bn in December and the deficit for goods alone was £9.2 bn; both were the worst figures ever. The annual trade deficit for 2010 was £46.2 bn, up from
£29.7 bn in 2009. In fairness, it should be noted that there was a £51 bn annual surplus on trade in services but that this was down £1.7 bn from 2009.
That means that foreigners have invested £ 46 billion in the UK this year just gone. How excellent, that means that there must be more investment, more jobs, more productive capacity, in the pipeline, for we\’ve more capital to play with.
Hmm, what\’s that? You\’ve forgotten that the balance of payments must balance, have you?