Home Business NewsBusinessBusiness Growth Exports to the EU soar by £3.7bn after a record slump

Exports to the EU soar by £3.7bn after a record slump

by LLB Finance Reporter
13th Apr 21 1:30 pm

UK trade with the EU in February bounced back following a record slump of £5.7bn in January and the Office for National Statistics (ONS) said exports rose by £3.7bn or 46.6%.

The ONS said that increase in exports was driven by machinery, transport equipment and chemicals.

Imports from the EU made a come back and rose by £1.2bn or 7.3% in February after suffering a record £6.7bn decline in January due to disruption.

Total UK exports to all countries rose by £2.2bn and total imports were £2.8bn higher, ONS figures show.

AJ Bell financial analyst Danni Hewson said, “There is also small comfort to be had in February’s trade figures.

“Exports to the EU, which dropped so dramatically off a cliff in January, have bungeed back up, though they are still £2 billion down on pre-Brexit levels.

“Notably imports from the EU were less resilient and remain more than £5 billion down.”

Hilary Benn MP, co-convenor of the new UK Trade and Business Commission, said, “These figures show a recovery in trade with the EU compared to the previous month, but exports to the Continent still remain well below the levels seen last year.

“More analysis is now needed to distinguish between the short-term impact of the coronavirus and the longer-term challenges posed by the end of the transition period.

“We know many smaller businesses are struggling to adapt to the end of the transition period as they face extra costs and bureaucracy.

“The Government should respond to the concerns of the businesses and communities affected and work to improve the current EU-UK agreement.”

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