The Case for a Possible Brexit and Its Impact on the Uk Economy
The importance of the EU has increasingly become more significant in terms of …show more content…
Although the UK experienced a persistent deficit in terms of its total trade with non-EU countries and the EU, its deficit with non-EU countries were less significant in terms of its magnitude when compared with countries within the EU. This could further be examined using the gradient from each graph from figure 2 and 3. The gradient in figure 2 at -245.03 being steeper than that of figure 3 signifies a greater balance of trade deficit with the EU.
In the evaluation of the quarterly time series, it could be stated that the current account might not necessarily be a good measure to analyse the importance of the EU as a trading partner because the UK is not an export-led country of goods and so it would be wrong to compare it with other EU countries that have surpluses in their balance of trade. From figure 2, the UK was seen to have had a persistent balance of trade deficit with the EU as imports were increasing by 4.98% and exports by 2.79% per annum. This makes the UK seem relatively uncompetitive when compared to other members of the EU such as Germany and Belgium who are net exporters of goods and therefore are able to achieve surpluses of €44.6 billion and