UK’s Trade with EU: Things are changing!
In 2016, according to EU import data, out of UK’s £550 billion, £240 billion worth of exports went to nations in the EU. That’s mere, 43% of the UK’s overall exports.
Though this figure may seem pleasing to you, it has declined over the years, and the same is expected in the coming year. It’s not because of any relationship problem of UK with the EU. It’s just that over the past few years, developing nations have shown more significant growth than the developed countries. Therefore, the demand for UK exports has risen in non-EU nations.
Not only that but after going through EU export data, we’ve also seen a decline in the UK importing goods from EU nations. In 2016, it was recorded that UK imported 54% from other EU nations. This share fell from 58% in the year 2002.
How vital are the Import-Export Stats to each Party?
There are many ways to analyze the importance of international trade between the UK and EU. However, we have focused on the three major ones.
What’s the Trade Ratio between the Two Bodies
After going through the EU export and import data, we can conclude that the UK is currently in a trade deficit situation with EU. The numbers show that the rest of the EU export £80 billion more to the UK, then what they import from them.
UK exported goods and services valued at £240 billion to other EU nations. On the other hand, the nations of the EU shipped £320 billion to the UK.
UK-EU exports are a more significant part of the UK’s NI than the EU’s
Even though less of our exports are presently going to other EU nations, these fares are still similarly as essential to UK’s economy.
The £240 billion worth of exports of products and ventures to other EU nations were worth around 12% of the estimation of the British economy in 2016. It's been at around 12-15% over the previous decade.
Exports from whatever is left of the EU to the British economy were worth around 3-4% of the measure of the rest of the EU's economy in 2015. The correct number relies upon whether you utilize the £390 billion from EU statistics or £300 billion figure from UK’s data.
The EU’s second largest export market is the UK
It's been guaranteed in the past that the UK is the EU's biggest single export market for products.
This used to be the situation on the off chance that you regarded the UK as though it were not in the EU and spotlight on EU exports to non-EU nations. In the most recent year, it has changed with the goal that the USA is presently marginally ahead. Utilizing the most recent figures for 2016, 16% of EU products sent out went to the UK, contrasted with 17% heading off to the USA.
In case you're checking EU nations too then Germany gets the most significant measure of products exported from other EU nations.
After going through all these stats, we can conclude that regardless of the shift in the percentage of exports and imports, the UK and EU countries have always had positive trade relations. Even though the rate has witnessed a decline, we can’t blame any nation as it’s due to the growth of developing counties all around the world. If we look closely, we’ll even see the figures increasing.
In addition to that, in the coming years, I predict that the trade ratio between the two parties will become better as the economic growth of countries that come under the developing category stabilize.