Sunday, September 20, 2020

UK export growth dips below Germany and Spain

UK export growth has fallen this quarter as Spain and Germany take the lead, according to the latest European Export Index by accountants and business advisers BDO.

BDO’s Export Growth Index charts annual growth in total exports. The UK index has fallen to 99.9 from 100.6 in the previous quarter. The report indicates that the increasing value of the pound, which is up by 3.7% year-on-year, is likely making UK exports less appealing to foreign buyers as high inflationary pressures have forced producers to push prices up.

This is causing overseas buyers to turn to alternative markets, and this trend appears set to continueBDO’s Export Inflation Index – which indicates the rate of year-on-year growth in export prices – decreased in all European countries except the UK in the first quarter of this year. The UK index rose to 104.6 from 98.9. Despite the efforts of the European Central Bank, Eurozone inflation has been falling since November.

While the UK slips behind – since Q2 of 2017, its export growth has slowed dramatically from 108.1 to 99.1 – the report reveals European export growth is set to accelerate in 2018. BDO’s Export Growth Index for Europe climbed 2.7 points from the last quarter of 2017, reaching 103.5. Growth across the Eurozone remains healthy and has been boosted by the continued increase in global trade as well as strengthening domestic demand in member states. The findings suggest that the EU is on course to record impressive GDP growth in the first quarter of 2018 and export growth is an important contributor to this.

The report also points to Spain and Germany as the top performing exporters among the EU’s largest economies. Spain, whose largest net exports include vehicles, fruits, vegetables and meat, recorded the highest index score in the first quarter of 2018, rising to 105.1 from 102.9. Its exports increased at a rate of 8% year-on-year for the past three quarters but the increase suggests even faster growth is expected.

German exporters, who are already amongst Europe’s top performers, are also set to experience faster growth. BDO’s Export Growth Index for Germany climbed to 104.6 in Q1, 1.7 points above the 102.9 registered in the final quarter of 2017.

Peter Hemington, Partner, BDO LLP, said: “While we’re seeing a strong performance from exporters across Europe because of the continuously improving global economic outlook, the UK falling to the back of the pack is something of a warning sign for government.

“Considering it’s been almost a year since Article 50 was triggered and there is still no clarity on trade deals or Brexit tariffs, the government needs to reveal its position immediately so UK businesses can prepare for future trading conditions and ensure Britain remains a key player in international markets.”

A message from the Editor:

Thank you for reading this story on our news site - please take a moment to read this important message:

As you know, our aim is to bring you, the reader, an editorially led news site and magazine but journalism costs money and we rely on advertising, print and digital revenues to help to support them.

With the Covid-19 lockdown having a major impact on our industry as a whole, the advertising revenues we normally receive, which helps us cover the cost of our journalists and this website, have been drastically affected.

As such we need your help. If you can support our news sites/magazines with either a small donation of even £1, or a subscription to our magazine, which costs just £31.50 per year, (inc p&P and mailed direct to your door) your generosity will help us weather the storm and continue in our quest to deliver quality journalism.

As a subscriber, you will have unlimited access to our web site and magazine. You'll also be offered VIP invitations to our events, preferential rates to all our awards and get access to exclusive newsletters and content.

Just click here to subscribe and in the meantime may I wish you the very best.




Latest news

£1.1m engineering skills boost for Sheffield

In a national first, teenagers at UTC Sheffield will develop a new range of in demand high-level digital engineering skills following a £1.1 million...

Cable cleat manufacturer expands North Yorkshire headquarters

Cable cleat manufacturer, Ellis Patents, has invested £500,000 in a 25 per cent expansion of its North Yorkshire headquarters. The main element of the expansion...

Time Out: Spencer Coffin, director of Procure Direct

The weekend is just around the corner and that means another ‘Time Out’. This week Business Link talks to Spencer Coffin, director of Procure...

Yorkshire hydroelectric projects acquired

Two hydropower projects in Yorkshire have changed hands as part of a £4.74 million acquisition. The deal sees JLEN, a listed environmental infrastructure fund, swoop...

Leeds med-tech firm raises £2.2m via share placing

Surgical Innovations has successfully raised £2.2 million to reinflate working capital, invest in new product development and sustainability support initiatives. The AIM listed Leeds-based med-tech...

ITM Power part of major hydrogen partnership

Sheffield hydrogen specialist, ITM Power, is one third of a new partnership which aims to use the clean renewable fuel to help Scotland achieve...

Related news

£1.1m engineering skills boost for Sheffield

In a national first, teenagers at UTC Sheffield will develop a new range of in demand high-level digital engineering skills following a £1.1 million...

Cable cleat manufacturer expands North Yorkshire headquarters

Cable cleat manufacturer, Ellis Patents, has invested £500,000 in a 25 per cent expansion of its North Yorkshire headquarters. The main element of the expansion...

Time Out: Spencer Coffin, director of Procure Direct

The weekend is just around the corner and that means another ‘Time Out’. This week Business Link talks to Spencer Coffin, director of Procure...

Yorkshire hydroelectric projects acquired

Two hydropower projects in Yorkshire have changed hands as part of a £4.74 million acquisition. The deal sees JLEN, a listed environmental infrastructure fund, swoop...

By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.

Close