Scottish exports’ massive surge as London and the South’s deficit widens to saddle us with massive debt

2017_RTS_Q4

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!

https://www.ons.gov.uk/economy/nationalaccounts/balanceofpayments/bulletins/uktrade/january2018

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.’

https://www.thebalance.com/balance-of-trade-definition-favorable-vs-unfavorable-3306261

Who has the biggest trade surplus and are they pleased? Germany at $287 billion and Yes. See this:

https://www.reuters.com/article/us-germany-economy-trade/germany-trumps-asia-with-worlds-largest-current-account-surplus-idUSKBN1F50WP

 

 

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