There was a silver lining to the news that the UK economy shrank again in April, with good statistics on the international trade front.
Official figures from the Office for National Statistics (ONS) show gross domestic product (GDP) fell by 0.3 per cent in April 2022, a further decline after a drop of 0.1 per cent in March 2022.
The ONS report follows hard on the heels of the Organisation for Economic Co-operation and Development (OECD) downward revised forecast last week for UK growth in 2022, from 4.75 per cent to 3.64 per cent.
Imports and exports show steady growth
However, ONS International Trade statistics showed that both imports and exports of goods, excluding precious metals, rose by 0.7 per cent and 7.4 per cent respectively. EU exports also increased for the third consecutive month in April 2022.
Exports were driven by machinery and transport equipment going to both EU and non-EU countries and fuel exports.
Total exports of goods, excluding precious metals, increased by £2.2 billion (7.4 per cent) in April 2022 compared with the previous month.
CBI calls for action on growth
Compared with the previous month, total imports of goods, excluding precious metals, increased by £0.4 billion (0.7 per cent), while imports from EU countries increased by £1.1 billion (4.2 per cent), while imports from non-EU countries fell by £0.7 billion (2.6 per cent).
The GDP figures have led to the Confederation of British Industry (CBI) calling for action before the country slips into recession, adding that they were a tough set of statistics to stomach.
The CBI downgraded its growth outlook to 3.7 per cent for this year, from 5.1 per cent previously, and just one per cent in 2023, from three per cent and has proposed several actions points ahead of the Autumn Budget to boost the economy, which include:
- Take immediate steps to alleviate labour and skills shortages
- Cut approval times for new offshore wind farms from four years to one year
- Announce a permanent replacement to the Recovery Loan Scheme to support cashflow
- Boost confidence in the economy:
- Act as a mediation between the rail companies and unions to find solutions to avoid a summer of train chaos
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