British exports to grow at “fastest pace since 2011” according to HSBC forecasts
The value of British exports will expand at the fastest pace since 2011 during the course of this year, according to forecasts from HSBC to be published today.
UK goods and services exports will increase by 10 per cent in 2018 to hit $900bn in US dollar terms (£639bn), the bank said.
British exporters have been boosted by a weaker pound at the same time that the economies of key trading partners have accelerated – even as the UK economy has failed to keep pace.
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The US is the top prospect for future British export growth targeted by 19 per cent of British exporters looking to grow, according to a survey of 350 firms.
Germany and France were the next most popular markets for UK firms looking to sell more abroad.
Amanda Murphy, head of commercial banking for HSBC UK, said the bank predicts “a really strong near-term outlook for UK exporters and importers”.
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“Undeterred by future post-EU uncertainty, businesses clearly aim to capitalise on the cheaper pound and rising demand in key markets to boost their overseas sales,” she added.
In the longer term, the forecast predicts that the dollar value of UK exports will double by 2030, after taking into account price and exchange rate effects, with an increased contribution from the services sector.
Services currently account for almost four-fifths of output, yet the goods trade makes up three-fifths of all exports. However, HSBC predicts goods and services will make equal contributions by the end of the next decade.
Over that period the India will be the fastest-growing importer of British goods, HSBC said, followed by the United Arab Emirates along with Vietnam and Indonesia. Under the forecast, China will be the fourth-biggest importer of British products
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