In 2017, Scotland’s exports rose by 19.2% to £28.8 billion widening our trade surplus and maintaining our record of having an overall surplus at least as far back as 2014. There are around 7 000 exporters in Scotland with an average value of £4.2 million.
Judging by the graph above, London’s deficit alone is nearly £50 billion per year and the South of England as a whole seems to be running a deficit of around £100 billion!
I sometimes read that a trade surplus is not always that good a thing. I’m no economist, thank dog, but I doubt that a prolonged trade deficit I sustainable over the long term. Here’s a more plausible explanation:
‘Most countries try to create trade policies that encourage a trade surplus. They consider a surplus a favorable trade balance because it’s like making a profit as a country. Nations prefer to sell more products and receive more capital for their residents. It translates into a higher standard of living. Their companies also gain a competitive advantage in expertise by producing all the exports. They hire more workers, reducing unemployment and generating more income.’
Who has the biggest trade surplus and are they pleased? Germany at $287 billion and Yes. See this: