The trade deficit in the UK shrank in March as exports to the US, China and Russia grew strongly, official figures showed today.
The UK's trade deficit on goods and services was £2.7bn in March, compared to £2.9bn in February, while the deficit on goods alone was flat at £8.6bn.
Exports to countries outside the EU grew 12 per cent, driven by chemicals and cars, while the eurozone crisis continued to take its toll as EU exports were flat month on month.
While the deficit shrank slightly, economists said net trade was still likely to have knocked 0.2 per cent off gross domestic product (GDP) growth, putting a dampener on hopes that growth figures for the first quarter of the year will be revised upwards.
Vicky Redwood, chief UK economist at Capital Economics, said: "March's UK trade figures showed a bit of an improvement, although the external sector still looks likely to have dragged on GDP growth in the first quarter overall."
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereComments are closed on this article