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Release: Explanations beyond exchange rates, trends in the UK since 2007

Released: 22 August 2013

Contact

Andrew Jowett

Office of the Chief Economic Adviser

macro@ons.gsi.gov.uk

Telephone: +44 (0)1633 455357

Categories: Economy, National Accounts, Balance of Payments

Frequency of release: Irregularly

Language: English

Geographical coverage: UK

Geographical breakdown: UK and GB

Economic theory suggests that a country's trade balance should increase following a depreciation of its currency, due to the effect on the relative price of its exports and imports. This article examines the reaction of the UK trade balance since the substantial depreciation of sterling between Q3 2007 and Q1 2009, and explores the reasons why trends in UK trade may not have developed as would be expected given the sustained depreciation of sterling.
Content from the Office for National Statistics.
© Crown Copyright applies unless otherwise stated.