UK’s exporters forecast good times to come
BRITISH exporters are expecting robust growth in the next two years, as economies on either side of the channel provide a better climate for trade, despite the UK’s poor investment in research and development.
Exports from the UK are projected to increase by five per cent during each of the next two years, and confidence among trading companies is at its highest level for four and a half years, according to a report released by HSBC this morning.
Nearly two thirds of exporters say that they expect sales to increase during the first half of this year, and economic growth in the UK, north America and the Eurozone gives HSBC its buoyant forecast.
However, the bank’s research adds that the UK’s firms are not investing enough in research and development (R&D), which makes up only 1.77 per cent of GDP.
In comparison, 2.25 per cent is invested in research in France, 2.77 per cent in the US and 2.84 per cent in Germany.
“Companies within developed economies that own the intellectual property of high value goods still enjoy a strong competitive advantage, but under-investment in R&D could threaten the advantage the UK enjoys, presenting an opportunity for emerging markets to gain ground,” said Mark Emmerson, HSBC’s UK head of global trade.