The rise in the price of UK exports has caused many overseas buyers to look to alternative markets for their supplies; a trend which is set to continue according to experts. The latest quarter figures see the UK trailing behind the rest of the EU, with Spain and Germany steaming ahead in the leaderboard according to the European Export Index comprised by BDO LLP (accountants and business advisors).
The UK’s Export Growth Index pinpoints the annual growth in total exports for countries, and the newest results highlight that British export rates have fallen from 100.6 in the previous quarter to 99.9 for the latest quarter. According to the report, the reason behind the drop is the steadily increasing value of the pound which has seen an average annual rise of 3.7%; this has likely made the UK exports less appealing to foreign buyers, coupled with the high inflation rate which has forced many British producers to bump their own rates.
Meanwhile, growth across the EU is set to remain healthy, boosted by global trade and domestic demand within the member states. Exceptional export growth has been a big contributor to the EU achieving record GDPR growth over this quarter.
Peter Hemington, BDO LLP, commented: “While we’re seeing a strong performance from exports 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 the government.”
The problem, many cite, is the lack of clarity on the positions and development of negotiation talks on trading agreements. With more information, businesses could better prepare and thus ensure the UK are better contenders in the international market. At present, the statistics do not look hopeful, but time shows us that anything is possible!
If you want to discuss exports, supplier chains or simply about how to manage the cost of business utilities, get in touch with our specialists today. With years of experience in a range of industries, our experts can utilise their knowledge and supplier networks to ensure your business saves money while still operating efficiently.