UK becomes one of world's biggest exporters - or does it?

© Tashatuvango

Interesting article by The Conversation on why the UK’s position as the world’s fourth largest exporter  – yeah, we had to read that one again as well – is not all that is seems.

New data showed the UK overtook France, the Netherlands and Japan in 2022, with $1.02 trillion-worth of exports. However, noted the article, it’s a potentially misleading stat.

Total exports include the total value of products, but in the UK’s case, much of the product is imported, and simply assembled in the UK, such as Mini cars. Up to 60% of the Mini’s value is created in other countries, and only completed in the UK.

The value of imported inputs, ie goods imported to finish exports, went up nearly 5% from the EU, and 12% from non-EU countries in 2022, suggesting an increased reliance on imported goods. And the trade deficit between imports and exports was about £66.8bn in 2022 – the highest since 1989. Worth a read.