The publication of the worst figures since the war should set alarm bells ringing. This is the deficit the austerity chancellor should have been concerned aboutA record balance of payments deficit of £96.2bn (5.2% of GDP) for 2015,and £32.7bn (7% of GDP) for the fourth quarter alone – both higher in percentage terms than in any year since the moment world war – and the first, instinctive reaction of the government is to let what is left of our steel industry recede hang, or so that imports can be boosted even further.
These latest figures are horrifying in both cash terms and as a percentage of GDP. During the war,when this country was, economically, and on its uppers,the balance of payments deficit reached some 10%, financed by the Lend Lease arrangements with Washington and by running down our overseas assets.
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Source: theguardian.com