LONDON’S small and medium sized companies were yesterday encouraged to look overseas to bolster their growth.
Research by accountancy body ICAEW showed that 70 per cent of UK businesses are looking to exports to further their recovery, while Bank of England governor Mervyn King said Britain was successfully “rebalancing” towards exports.
While the “25 per cent fall in the nominal exchange rate” had contributed to the Bank struggling with inflation, it was nonetheless “necessary for rebalancing, to escape the recession,” King said.
“The UK is an almost saturated marketplace,” said Ian Strange, ICAEW’s London regional director. “Economic growth will be delivered by SMEs and those that look beyond these shores to market their products and services.”
His comments chimed with those of King, who cited “robust global demand” as a driver of economic recovery, speaking after the publication of the Bank’s inflation report.
“The past depreciation of sterling, together with the recovery in global demand, should provide continued support to the recovery in output,” the report said.
“The committee judges that net trade is likely to add to GDP growth throughout the forecast period, as export volumes continue to grow rapidly,” it continued.