Domesday Live

Why does the UK buy more from abroad than it sells?

The UK has bought more goods than it sells for about forty years. Much of it is balanced by a surplus in services such as finance, law and education. The gap in total has to be paid for by foreign investment into the UK, which is fine while investors are willing to lend.

Why it happens

• Goods deficit, services surplus. The UK imports more cars, machinery, food and energy than it exports, and exports services, where it is among the world's biggest.
• Consumers spend what the economy makes. The UK saves less than it invests, so it relies on money from abroad, which shows up as a trade and current account deficit.
• The pound and prices. A weaker pound makes imports dearer and exports cheaper, but the effect on the gap takes time and is limited.
• Trade rules after Brexit. New customs checks and rules added costs to trade with the EU, its biggest partner, and affected small exporters most.