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EU exports are a mere 12% of British economy: Trade figures show focus on Europe has steadily dropped in past five years

  • British businesses now earn £222.4billion by selling goods to EU countries
  • This is equivalent to just 12.1 per cent of the total economic output 
  • Exports grew at a world-beating pace in 2015, for the first time since 2006

Exports to the European Union now account for just 12 per cent of Britain’s economy and companies are looking elsewhere for trade.

The Office for National Statistics’ Pink Book – which details the economy’s reliance on imports and exports – shows our focus on Europe has dropped steadily for the past five years.

British businesses now earn £222.4billion by selling goods and services to EU countries – equivalent to 12.1 per cent of total economic output.

But the amount sold to nations outside the bloc is higher – at £287.9billion, or 15.7 per cent of the economy.

Exports to the European Union now account for just 12 per cent of Britain's economy and companies are looking elsewhere for trade

The ONS also said that British exports grew at a world-beating pace in 2015 for the first time since 2006.

It added: ‘Within this the UK has seen increased trade activity in goods with non-EU countries, with their share exceeding that of EU countries in the last four years.’

Campaigners argued that the figures showed the UK should look beyond the EU as it sought opportunities for growth.

They said the country was not reliant on the bloc and could afford to be bold in the Brexit negotiations ahead. John Longworth, former head of the British Chambers of Commerce, said: ‘Exports to the EU represent an ever-smaller element of our economy but the benefits of Brexit are applicable to the whole of the economy.

‘Brexit will allow Britain to become a great trading nation once again. We need to grasp this opportunity.’

Goods exports to the EU now stand at £134billion, but we sell £151billion to the rest of the world.

Britain has sold more goods outside the EU than within it for the last four years. This started in 2012 as the eurozone plunged into crisis and has never recovered.

And in the services market – an area where Britain is particularly strong – we sell £88.9billion to Europe, but £136.6billion elsewhere.

Institute of Directors economist Michael Martins said the developing world was an increasingly important market for British goods.

As its consumers become richer, they get more discerning and seek out higher-quality goods and it is this area where Britain excels.

Since her appointment as Prime Minister, Theresa May has repeatedly stressed that Britain remains open for business and will be more outward-looking, not less.

She and fellow Cabinet ministers have been jetting across the world to talk up the nation, with new International Trade Minister Liam Fox holding talks with a host of nations about free trade deals to bring tariffs down.

Since her appointment as Prime Minister, Theresa May (pictured) has repeatedly stressed that Britain remains open for business and will be more outward-looking, not less

Canada, New Zealand, Australia, China and India have all expressed an interest in new partnerships.

Even in America – despite President Barack Obama warning before the referendum that Britain would be at the ‘back of the queue’ if it voted to leave the EU – senior politicians are showing an interest. The Pink Book also highlights Britain’s long-standing trade deficit, which shows how much more we import than export.

This is a cause for concern, because net importers are more reliant on other nations and send more money to foreign countries than they earn in them.

The trade deficit now stands at £38.6billion, up from £36.2billion a year earlier.

And the EU sells £68.5billion more goods and services to the UK than the UK sells to it.

Although the deficit is generally a problem, it has been argued European exporters’ reliance on the UK makes their governments more likely to be flexible when it comes to striking a new deal.

Meanwhile, it emerged that government officials or prominent business figures in 27 countries have declared a desire to secure a post-Brexit trade deal with Britain.

Out of the ten largest economies in the world, only two, France and Italy, have not yet made moves.

The impact of Brexit on the UK economy is likely to be short-lived, according to the boss of Barclays.

Speaking as the bank unveiled better than expected half-year profits of £2.1billion, Jes Staley stressed that they are willing to give credit to families and businesses.

The CEO said: ‘We’re open to extend credit and we’re going to do it prudently.’



 Why Britain, not Europe, is best place to invest

By Alex Brummer, City Editor 

Yesterday’s figures from the Office for National Statistics give the lie to claims made during the referendum campaign that separating Britain from the market of 500million people in Europe would be a calamitous mistake.

The data shows that as the 19 countries of the eurozone stagnated, the UK successfully turned its attention to the rest of the world.

Indeed, in each of the past four years our exports to the rest of the world have exceeded those to the much-vaunted single market.

The Pink Book, which examines every aspect of our trade across the globe, says that in 2015 we sold £151billion of goods to non-EU countries – far exceeding the £134billion to Europe. The still unresolved crisis in the eurozone meant that Britain’s exports to the bloc fell by 3.4 per cent in 2014 and 2.7 per cent in 2015.

The new figures will be grist to the mill for Brexit Secretary David Davis and International Trade tsar Dr Liam Fox as they seek to forge new trading arrangements with fast growing nations such as China, India and the United States.

Meanwhile, Britain’s status as a provider of services to both Europe and the rest of the world continues to expand exponentially.

At the cutting edge of this expansion have been legal and consulting services, none of which are covered by existing trade agreements. Britain is regarded as a legal powerhouse and now hosts many of the biggest American and continental law firms who favour the fairness and incorruptibility of the English legal system.

The new figures show that the current account deficit stood at 5.4 per cent last year and the governor of the Bank of England Mark Carney *pictured) has argued that this makes the UK 'dependent on the kindness of strangers' to pour money into Britain

What the overall data shows is that among the non-EU countries the United States is our most important trading partner with the surplus on trade rising to £39billion last year. In contrast Britain has recorded ‘persistent’ trade deficits with Germany, partly fuelled by demand from UK citizens for expensive German cars.

The data shows how Germany, as a country with a huge surplus in all its dealings with the rest of the world, is sucking wealth out of all of its trading partners.

Some experts have voiced concerns about the increasing size of Britain’s capital account deficit with the world, which is made up of our trade in goods and services as well as the income from our investments in other countries.

The new figures show that the current account deficit stood at 5.4 per cent last year and the governor of the Bank of England Mark Carney has argued that this makes the UK ‘dependent on the kindness of strangers’ to pour money into Britain.

The ONS suggests it is partly a consequence of the success of the UK economy compared to our European trading partners.

Investments by foreigners in Britain, particularly those from Europe, have made far fatter returns than those of UK companies in the eurozone where the economies have been slumping.

If that is the case then it is far from being the danger signal for Britain and the pound that some economists have claimed.

Read more: http://www.dailymail.co.uk/news/article-3715547/EU-exports-mere-12-British-economy-Trade-figures-focus-Europe-steadily-dropped-past-five-years.html#ixzz4FslE7nBq
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http://www.dailymail.co.uk/news/article-3715547/EU-exports-mere-12-British-economy-Trade-figures-focus-Europe-steadily-dropped-past-five-years.html

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