Below is the text of Mr Major’s written Parliamentary Answer on the Trade Deficit on 3rd November 1989.
Mr. Orme To ask the Chancellor of the Exchequer if he will make a statement on the balance of trade deficit.
Mr. Major The deficit on visible trade in the third quarter of 1989 was £6.8 billion. In that quarter exports, in both value and volume terms, were at an all-time high. Excluding oil and erratics, export volumes were 8.5 per cent. higher than in the third quarter of 1988. Imports in the third quarter of 1989 were also at an all-time high, but import growth has slowed down significantly since last year. As domestic demand slows further, import growth should also continue to decline.