TAIPEI, Taiwan, April 4, 2018 (Newswire.com) - According to official data published last week, the UK’s current account deficit decreased significantly in 2017. Burton Mills economists say this will go a long way to alleviating worries that Britain will have to depend on outside investors as Brexit approaches.
The Office for National Statistics also stated that, last year, the UK economy expanded at its slowest rate since 2012. Burton Mills economists say this low rate of growth meant that the UK economy was the weakest in the Group of Seven advanced countries in 2017 as the vote to exit the European Union had placed greater pressure on consumer budgets.
Burton Mills economists say that prospects are looking better in 2018 as growth in the services sector has improved and the effects of higher inflation on consumer spending are expected to ease in the coming months.
Britain’s current account deficit stood at 18.4 billion pounds in final quarter of last year, less than consensus forecasts by economists with the third quarter’s shortfall being downwardly revised.
Burton Mills economists say the 2017 deficit ended at 4.1 percent of GDP, its lowest in 6 years and well below the record high of 5.8 percent in 2016.
Although the current account deficit is still too high for any real sense of comfort, Burton Mills economists say the reduction is welcome, adding that it was too early to predict a steady improvement in the deficit.
Britain’s official budget forecasters have warned that foreign investment sentiment could be negatively affected by a problematic Brexit.
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Source: Burton Mills