Growing trade gap likely to weigh on economic recovery

As China celebrates the Year of the Monkey, the country's slowing economy is weighing on UK growth hopes. Picture: ChinaFotoPress via Getty Images

Britain's trade gap has grown to its highest level since 2010, triggering fresh concerns over the strength of the economic recovery.

Official figures yesterday showed that the deficit – the difference in value between UK imports and exports – widened by £300 million to £34.7 billion in 2015.

This came despite an improvement in December, with the deficit reducing to £2.7bn from a revised £4bn in November.

But the narrowed trade gap showed little sign of a pick-up in exports, with the gap easing thanks only to a fall in imports.

UK firms struggled to sell products abroad last year as the strong pound made British goods more expensive, while the global economic woes and slowdown in China added to the trade troubles.

The figures from the Office for National Statistics also show exports of goods to the European Union fell by £11.6bn between 2014 and 2015, as the weak euro made UK products more expensive.

Exports to China, meanwhile, have fallen since 2011 and there are fears the slowdown in China’s economic growth rate will further hit the UK over the year ahead.

Chinese economic growth falls down to its lowest level since 1990

David Kern, chief economist at the British Chambers of Commerce, called for more help to allow UK businesses, particularly smaller ones, to tap into new export markets.

He said: “Despite an improvement in the UK’s trade deficit in December, it still worsened in 2015 as a whole com