According to financial figures, the goods trade deficit of UK has widened to a record level in the month of July as the imports increased sharply and exports saw a big decline as compared to the previous month.

As per the records, the trade deficit rose up to its highest level in last five years creating fears for the UK government.

According to the Office for National Statistics, the trade deficit of goods and services climbed to 4.9 billion pounds in July compared to the 3.9 billion pounds of deficit in June. While the trade deficit stood at 8.7 billion pounds in the same month compared to the 7.8 billion pound of deficit in the previous month making it the highest deficit since the deficit figure started in the year 1998.

However, in this period, there has been a hike in imports which was influenced by the rising consumer demands. Analysts are watching the figures quite closely to see whether the new deficit figures will have any impact on the GDP of third quarter in the UK or not. The rise in imports was mainly driven by strong imports of oil and organic chemicals.