The UK has seen a boost in the value in international trading, exceeding previous expectations.
The value of exports increased slightly by £0.2 billion (0.7 per cent) in November 2022, according to the latest trade figures from the Office for National Statistics (ONS).
The value of imports increased by £1.8 billion (3.5 per cent), with those from EU countries growing by £1.2 billion (4.7 per cent) compared with those from non-EU countries which rose by £0.6 billion (2.2 per cent).
Overall, this boosted gross domestic product (GDP), which had been expected to contract, by 0.1 per cent.
The rise gave hope that the UK might avoid a technical recession, which is two consecutive quarters of declining GDP.
Better performance
According to the ONS, exports to the EU were down by 0.4 per cent compared to October, while non-EU exports performed slightly better, up 0.7 per cent.
Non-EU exports were of greater value than those to the EU, worth £16.7 billion in November, compared with £16.1 billion for EU exports.
The value of goods imports increased by £1.8 billion (3.5 per cent), with those from EU countries growing by £1.2 billion (4.7 per cent) compared with those from non-EU countries which rose by £0.6 billion (2.2 per cent).
However, according to Think Tank UK in Changing Europe’s trade tracker, UK trade currently lags behind the eurozone, US, China, Latin America, and other advanced economies.
In 2021, the UK experienced only a 2.5 per cent annual growth in trade, placing it last in the G20.
Trade agreement problems
The report says the underperformance has been apparent since 2016 and has been made worse by the implementation of the post-Brexit Trade and Cooperation Agreement (TCA) with the EU.
However, the Think Tank said it was not clear how much can directly be attributed to Brexit.
The EU UK Trade and Cooperation Agreement was signed in December 2020 and sets out preferential arrangements in areas such as trade in goods and services.
These can include digital trade, intellectual property, public procurement, aviation and road transport, energy, fisheries, social security coordination and participation in Union programmes. It is underpinned by provisions ensuring a level playing field and respect for fundamental rights.
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