The UK is an open economy and an active and successful international trader and investor. But the UK’s reliance on debt-financed consumer and government spending, and on the financial sector, has driven growing imbalances in the UK economy. According to the OECD, by 2007 the UK had the largest structural budget deficit in the G7 group of countries. The current account deficit was around 2¾% of GDP in 2007, a figure that was offset by a 2¼% surplus on trade in financial services. The UK now needs to rebalance its economy, from the public to the private sector and toward increased exports and investment
