Blog: Post-Brexit rebound: UK exports to EU climb rapidly – City A.M.

UK exports to the EU have climbed sharply, defying fears that Brexit would dampen trade between the two blocs, figures published today reveal.

Exports of UK goods to the EU jumped eight per cent in May, an increase of £1bn over the last month, according to the ONS.

Total exports of UK goods to all countries rose 4.9 per cent, up £1.3bn in May 2021.

Read more: UK economy grows 0.8 per cent in May

The rebound in trade between the UK and EU was driven by strong demand from European countries as economies across the bloc reopened. European firms are likely to have increased spending on UK good after stocks built up in the run up to the end of the post-Brexit transition period were depleted.

Strong exports figures also indicate that firms are getting to grips with the new administrative processes in place between the two blocs post-Brexit.

The figures also show the UK continues to strengthen trading relationships with countries outside the EU post-Brexit.

Monthly goods imports from non-EU countries was higher than the EU for the fifth consecutive month, although the gap is narrowing.

In the three months to May 2021, the trade deficit narrowed by £2.2bn to £3.5bn.

Demand for UK services continues to remain eleveated, with the UK posting a trade surplus for services of of £28.1bn in the three months to May 2021.

Read more: UK services sector continues recovery amid mounting inflation fears

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s