EXPORTS from the UK will rebound over the next decade, driven by a boom in goods and services going to emerging markets, a leading group of economists said today.
Overall exports will rise by 8.5 per cent a year, according to forecasters at the Ernst and Young Item Club.
The total value of UK goods and services into “BRIC” countries (Brazil, Russia, India, China) is set to increase by 11.7 per cent a year to 2020.
British exports to BRIC countries increased by an average of 20.6 per cent a year between 2004 and 2008.
The recession resulted in a major slowdown, as export growth to BRICs dropped to 2.2 per cent (2008--2010), and still lag behind peer countries such as Germany and the US.
But the global recovery is expected to reignite exports to booming BRICs.
Annual economic growth over the next decade will be far higher in China (8.5 per cent), India (7.9 per cent), Brazil (4.2 per cent) and Russia (four per cent) than in Western areas such as the Eurozone (1.8 per cent).
Exports of British financial services, mainly from the City, will increase by almost 10 per cent a year, the report said. Item economist Andrew Goodwin said the government should attempt to “break down regulatory barriers for companies that wish to break into those countries.”