BOE Says UK Exports Not Key to Recovery

The UK’s economic recovery is unlikely to be export driven as its biggest trading partner is “dead in the water”, a Bank of England policymaker has said.

In a rare interview by a Monetary Policy Committee member, David Miles told the BBC it was “pretty difficult” to see UK exports growing because of economic problems in the eurozone.

But he said the UK’s recovery was no longer being led by consumer spending.

Earlier official figures showed eurozone GDP was flat.

Professor Miles told Radio 5 Live’s Wake up to Money, UK export growth had been “pretty disappointing” over the last two or three years.

He said the “single biggest factor” behind the lack of export growth had been that demand in the eurozone had been close to zero during that time.

Professor Miles added: “So our single biggest export market has been, I’m tempted to say, dead in the water. It hasn’t been growing at all. And it’s pretty difficult in that environment to see exports growing very strongly. So the recovery, very welcome as it is, has been a bit dependant on consumer spending.”

The Bank policymaker’s comments highlight the difficulties the government faces in its attempts to re-balance the economy and boost exports.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza