Britain's trade deficit with the rest of the world hit a hefty £34 billion sterling (€53.2 billion) last year, official data showed this morning.
The deficit figures were the worst since records began over 300 years ago.
But the Office for National Statistics (ONS) said the country suffered a smaller-than-expected global goods trade deficit in December alone of £3 billion - well down from November's record £4.1 billion figure.
The narrowing in the deficit was driven by a sharp fall in the deficit with countries outside the European Union. That deficit fell to £2 billion sterling from £3.1 billion the month before.
That took the non-EU deficit for the full year to £25.3 billion, although that was smaller than the 2001 shortfall of £28 billion.
The ONS said the record 2002 deficit - the worst since records began in 1697 - was caused by the worst export performance in three years.
The ONS also released producer price data showing the recent jump in crude oil prices had pushed up factory gate price inflation to a two-year high of 1.6 per cent last month.