The UK’s trade balance shows a deficit, Bloomberg reports. The indicator demonstrated a record high in January as exports to the European Union plunged. This unprecedented hike was due to an increase in red tape following Brexit. Imports of goods excluding precious metals increased by 11% and exports dropped by 8.7% in January 2022. The trade deficit logged at £21.9 billion ($29 billion). It has been the country's biggest shortfall since at least 1996. William Bain, head of trade policy at the British Chambers of Commerce, said that traders faced difficulties with paperwork on EU exports throughout 2021 and in early 2022. “This is having a major effect on trade,” Bain added. A surge in poverty has become another problem for the UK. As a result, the share of households living in poverty increased to 1.5% in 2020 from 0.7% in 2019. Experts believe that skyrocketing inflation amid rising prices for food and housing utilities is the main reason for this.
