Expectations of a modest improvement in the UK goods trade deficit were dashed when it widened to an 11-month high of £7,278m in December. Economists had been predicting a narrowing of the deficit to £6,700m. The November deficit was revised to £6,798m from £6,784m.

The deterioration in the trade gap was driven by a 7.6% increase in imports from outside the EU, with around £0.3m of the £1bn increase in non-EU imports accounted for by oil related goods while £0.23bn was linked to aircraft imports.

For 2009 as a whole, the UK's goods trade deficit was lower than the preceding year for the first time since 1997, at £81.9bn, compared to a shortfall of £93.4bn in 2008.

Total exports fell 9.5%, the biggest year on year percentage fall since records commenced in 1947, while total imports fell 10.3%, the steepest decline since 1952.

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