Britain’s trade deficit refuses to shrink despite weaker sterling, with figures this week set to show the shortfall on goods trade remained at more than £11bn in June.
The fall in the value of the pound since the Brexit vote has fuelled a modest rise in exports, but has also bumped up the value of imports. Economists are forecasting only a slight reduction from the £11.9bn trade gap in May.
The pound is hovering close to last October’s six-year low against the euro — the currency that accounts for the biggest chunk of Britain’s foreign trade. Further declines could see sterling hit its weakest level since 2009.
The International Monetary Fund warned last month that Britain needs to train up its workers and become more competitive to reduce the trade deficit.