‘Truly horrible’ UK current account data: Britain’s current account deficit widened to a record £96.3 billion (€123 billion) in 2015 after a bad fourth quarter for exports. The good news is that the U.K. is growing faster than other economies (as shown by GDP data also out on Thursday). But that means Brits are importing more and exporting less — what Carney famously called relying “on the kindness of strangers,” quoting Tennessee Williams (one of my top 5 playwrights; full list to come).
Howard Archer, chief European economist at IHS Global Insight: “A truly horrible fourth quarter 2015 current account performance. While the markets have so far taken a relatively relaxed view of the U.K.’s elevated current account deficits, it could become an increasing problem if the markets lose confidence in the UK economy for any reason.”
Meanwhile prices are dropping in Europe due to deflation.
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