Economic Growth

Part of Oral Answers to Questions — Treasury – in the House of Commons at 12:00 am on 18th July 2017.

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Photo of Philip Hammond Philip Hammond The Chancellor of the Exchequer 12:00 am, 18th July 2017

As I am sure the hon. Gentleman will know, the short-run effect of a depreciation in sterling would be expected to be a decline in our trade balance performance as we suck in more expensive imports, in sterling terms. But over time the economy will adjust—there are signs that this is happening now—with exporters increasing their output to take advantage of weaker sterling and their greater competitiveness in international markets, and indeed not just exporters, but those who would substitute imported products with domestically produced products, which is often the best way forward for smaller companies.