"The goods balance will remain firmly in deficit through 2012"
- Melanie Bowler, economist at Moody's Analytics
U.K. trade deficit unexpectedly widened to 10.1 billion pounds in April from 8.7 billion pounds in March, said the Office for National Statistics on Friday.
"The goods balance will remain firmly in deficit through 2012," said Melanie Bowler, economist at Moody's Analytics.
"Weak demand from key European trade partners will weigh heavily on exports. The strong pound versus the euro is adding to problems. However, weaker demand for imports should prevent the balance from deteriorating substantially further."
"With the trade deficit widening in April and construction output again disappointing, the chances of the economy avoiding further contraction in the second quarter are dwindling," said Howard Archer, chief European and UK economist at IHS Global Insight.
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