The UK’s Deficit Reached Its Highest Level Since 2016
According to a recent study conducted by Market Inspector, the UK’s import from the EU reached its highest point during the first quarter of 2019 with £93.6 billion. However, at the same time, the UK had a trade deficit of -£3.0 billion with non-EU countries for the first time in the last few years.
A Study of The UK’s Imports and Exports
Market Inspector based its study of the UK’s trade partners on Trade and Investment Core Statistics Book, published in October 2019 by UK’s Department for International Trade. Interactive maps and graphs were used to present the assessment of global as well as EU trade partners. Moreover, the study includes an examination of the UK’s exports and imports and trade balance.
Top Global Export Partners
In 2018, the UK’s biggest export partners were the United States (£118.2 billion), Germany (£55.4 billion), the Netherlands (£44.0 billion), France (£42.1 billion), and Ireland (£38.3 billion). While the United States was the UK's biggest export market, eight out of the top ten export destinations were European countries.
However, North Macedonia with 483% (£1.5 billion), Gibraltar with 253% (£3.0 billion), South Korea with 220% (£9.8 billion) were top fastest-growing markets for the UK’s export between 2010-2018.
According to the government data, the UK has exported more to non-EU than EU countries between 2016 and 2019. The export value to non-EU countries was the highest with £91.2 billion in the fourth quarter of 2018. At the same time, the export to the EU reached its highest point of £74.6 billion in the fourth quarter of 2018.
Top Global Import Partners
In 2018, the UK’s top import countries were Germany (£77.3 billion), the United States (£72.4 billion), the Netherlands (£49.1 billion), China (£45.4 billion), and France (£42.8 billion).
Yet, between 2010 and 2018, the top fastest-growing markets for UK imports were Vietnam with 243% (£4.5 billion), Saudi Arabia with 201% (£3.7 billion), Algeria with 166% (£2.3 billion).
The study shows that EU countries are the UK’s main import partners. The import from EU countries reached its highest point of £93.6 billion during the first quarter of 2019. However, in recent years from non-EU countries have been continuously growing. It increased from £72.7 billion in the first quarter of 2016 to £85.0 billion in the first quarter of 2018.
The UK’s Trade Balance
In the second quarter of 2017, the UK reached the highest surplus of £11.4 billion with non-EU countries. However, in the first quarter of 2019, it had a deficit of -£3.0 billion with non-EU countries, for the first time in the last few years.
Between 2016 and 2019, the UK continuously ran a trade deficit with EU countries. It reached the highest deficit of -£19.3 billion in the first quarter of 2019.
Summary of the UK’s Trade
In 2018, total trade accounted for £1.3 trillion, of which £641.9 billion was with EU countries, and 657.2 billion with non-EU countries. In other words, the export and import’s share of the UK’s GDP was 61.8%. Finally, the trade deficit was on the level of 1.5% of GDP.
If you would like to learn more about the current state of the UK’s trade partnerships, you can find additional information in our recent blog post on Market Inspector.
Contact Information
Patrycja Hala Saçan
phs@market-inspector.co.uk
Galabina Nedelcheva
gn@market-inspector.co.uk
Phone: 020 3608 0133