Updated: Sep 22, 2021
Data derived from Office for national statistics, UK has clear pattern, which shows the effect of COVID situation on the balance of Trade.
If you observe the pattern for the trade of goods we can see clearly that that with time UK has increased import as compared to the export. Higher import of goods by UK led to the reduction in Balance of Trade (BOT). We can also observe that the difference between the import and export of goods is also increasing with time. Increasing lifestyle and requirements for the survival of the UK population maybe one of the impactful factor for the increased import of goods and decreased export. It was badly effected during COVID situation in 2020 where there is deep reduction in both export and import. If we check the BOT graph ( C ), we can see clearly that the BOT is going down with trade.
when we observe the pattern for the imports and exports for services , we can see clearly that BOT is moving in positive direction in terms of services. The growth of service industries in Unite Kingdom had the most remarkable economic impact , which provides about two-thirds of the GDP and three-fourths of total employment. That is main factor which led to high increase in export of services leading to positive BOT. But during COVID19 pandemic it got adversely effected and steep downward curve can be seen in graph plot B.
With Increasing BOT for services and decreasing BOT for goods , UK has clear pattern of maintained Total BOT.