UK trade deficit hits record. "UK economy is not in a healthy state"

More evidence of serious problems building up for the British economy but you won't hear our beloved Chancellor talking about how this record trade deficit is going to be financed or what are the likely consequences if it continues for much longer (which it will) .....................

UK trade gap hits record in 2005

The UK's trade gap soared to an all-time high of £31.9bn ($55.3bn) in

2005, reawakening concerns about the health of the economy. Imports for both goods and services outweighed exports last year, said the Office for National Statistics (ONS).

The gap is equal to 2.6% of GDP, much higher than the £23.6bn reported in 2004 and is the worst since records began at the end of World War II.

Economists expected the pound to weaken over the coming years as a result.

Simon Wallace, of the Centre for Economics and Business Research (CEBR), said the figures "demonstrate that the UK economy is not in a healthy state".

"Although exports of services had increased over the year, they could not keep up with the increasing demand for service imports," he said.

The final quarter of last year was the worst period for trade imbalances.

Goods and services worth £11bn were brought into the UK, much more than the £4bn forecast by economists.

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