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Europe's Crisis Poisoning UK Economy
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The UK government is still unhappy about the indicator for the deficit of trade balance.


According to a report published by the Office for National Statistics last Friday, the UK trade balance deficit increased by 1 bn 270 mln pounds in April. Analysts were more optimistic about the indicator hoping that it would shrink by 230 mln pounds.


Even though imports from China plunged, the UK trade balance is being suppressed by plummeting exports. In April UK exports diminished by 8.6%, while imports only contracted by 2.5%.


The Eurozone, UK�s major trade partner, is now drowning in debt troubles reverberating throughout the global economy and causing overall slump. So, just like other central banks, the Bank of England developed a series of emergency measures in case the crisis escalates or the Eurozone breaks up.


The urgent action plan is meant to shield the economy of Great Britain from destructive effects of the Europe�s debt crisis.


This week the Bank of England is to offer banks a new package of cheap loans. The UK government and Bank of England are set to pump 100 bn pounds into the economy, which is equivalent to 160 bn US dollars.


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