UK export growth contracts for first time since 2015 as European economies face turmoil
UK export growth has dropped to its lowest level since 2015 as political uncertainty and falling demand take their toll on European economies.
The growth of UK exports fell by 0.7 points to 94.9 in the fourth quarter 2018, according to figures from BDO’s latest European Export Index.
The UK is not the only European country to have been hit by economic turmoil. Germany saw its export growth fall 2.6 points, driven largely by the impact of tough new emissions standards for car manufacturers.
France was the worst performing major EU economy over the period, with export growth collapsing by 4.8 points. BDO said it expects the French economy to take a further hit as the country contends with widespread protests.
Economies across the continent have been hit by political uncertainty in the run-up to Brexit, as well as a drop in demand prompted by slowdowns in China and the US.
Overall, the EU export growth index rose by just 0.1 to 99.8.
BDO partner Peter Hemington said: “The EU remains our most important trading block but Brexit uncertainty is proving damaging.
“It’s crucial that Britain is seen to be open for business with the EU and other key markets as we enter what is going to be a critical year for the UK.”