In the News Teaching Activity – what happened to UK international trade in 2024? (Feb 2025)

In 2024, the UK faced a £28 billion trade deficit, with exports totalling £838 billion and imports at £866 billion.

In Q4 2024, the UK's trade deficit widened to £11.5 billion, up from £3.8 billion in Q3. Exports fell by 1.6%, while imports rose by 2.1%, highlighting a continuation of the trade imbalance. Despite a surplus in services trade of £176 billion, the substantial £204 billion deficit in goods trade exacerbated the overall deficit. The EU remained the UK's primary trade partner, accounting for 52% of imports and 41% of exports. The data underscores ongoing challenges in balancing trade dynamics with both EU and non-EU countries. With many global trade headwinds flaring up in recent weeks, the UK’s trade could be in for a bumpy ride this year.

Trade in goods and services: Economic indicators - House of Commons Library (Download the full report)

1. Why was the UK’s trade in services more successful than its trade in goods in 2024?

2. ‘The UK had a trade deficit with the EU of £99 billion in 2023 and a trade surplus of £77 billion with non-EU countries.’ To what extent has the UK’s pattern of trade been affected by leaving the EU and replacing EU membership with the Trade and Cooperation Agreement with the EU?

3. Discuss the policies that the UK could use to improve its current account on the Balance of Payments.