UK's Widening Trade Deficit in Q4 2024

In a recent report by the Office for National Statistics (ONS), the United Kingdom's trade deficit for goods and services has seen a significant increase, reaching £10.2 billion in the final quarter of 2024. This marks a £4.2 billion rise from the previous quarter, highlighting ongoing challenges in the UK's trade balance.

Goods and Services Trade: A Closer Look

The deficit in goods trade expanded by £4.8 billion to £59.5 billion, while the services trade surplus saw a modest increase of £0.6 billion, totaling £49.3 billion. This divergence underscores the contrasting performance between the UK's goods and services sectors.

Export and Import Dynamics

Total goods exports fell by £3.5 billion to £86.4 billion, a concerning trend for the UK's export-driven sectors. Conversely, goods imports rose by £1.3 billion to £145.9 billion, further exacerbating the trade deficit.