British exports rebalance away from Eurozone
British firms are weaning themselves off their historic reliance on sales to EU countries, finding alternative markets further afield instead, official figures showed yesterday.
The sustained economic malaise in the Eurozone has pushed UK exporters to other countries, with sales to the US, and the UAE rising particularly sharply in July.
Exports of goods to non-EU countries jumped by 3.4 per cent on the month to £12bn.
By contrast, exports to EU countries dived 10.7 per cent on the year to £12bn. And sales to Eurozone countries plunged even faster, down 11.7 per cent to £10.5bn.
Economists hope the rebalancing will allow Britain’s economic recovery to continue despite the troubles across the Channel.
“With the latest data showing the German economy contracting, France flat-lining and Italy back in recession, the prospect of a trade-led recovery anytime soon is diminishing,” said Scott Corfe from the Centre for Economics and Business Research.
“Without rebalancing towards non-EU markets – or a significant rebound in the European economy – the UK’s trade position could become a significant weight on growth prospects.”
Overall, British exports fell 4.2 per cent on the year to £24bn in July. And as imports increased by 1.9 per cent to £34.2bn, the trade deficit in goods increased 3.9 per cent to £10.2bn.
But analysts said the news was not entirely bad.
“The increase in imports is a positive sign that domestic demand is going from strength to strength,” said Allie Renison from the Institute of Directors.