The UK trade deficit on goods and services narrowed to £8.6 billion in Quarter 4 (Oct to Dec) 2016, following a sharp widening of the deficit in Quarter 3 (July to Sept) 2016; this narrowing was predominantly due to an increase in exports of goods to non-EU countries.

At the commodity level, the main causes of the narrowing of the deficit in Quarter 4 were increased exports of non-monetary gold, oil and aircraft as well as a decrease in imports of non-monetary gold.

Exports and imports of goods excluding oil and erratics have grown between each consecutive quarter of 2016; the deficit on goods excluding oil and erratics continued to widen in each quarter in 2016 because the import values increased more than exports.