BCC: Growth in exports must be supported

Commenting on the trade figures for November published today by the ONS, David Kern, Chief Economist at the British Chambers of Commerce (BCC), said:

“These figures are mixed with a slight increase in the overall size of the trade deficit. But the underlying trends are positive, with the volume of exports rising at a faster rate than the volume of imports in November.

“Longer-term comparisons show satisfactory growth in exports, but the pace of recovery is still not strong enough. The impressive recovery in manufacturing output that we have seen over the past year has not yet been reflected in a major improvement in international trade. Since the Government’s austerity measures will inevitably dampen domestic demand, a substantial boost in exports is a key component in any UK recovery.

“The Government must ensure that British exporters do not face competitive disadvantages in key areas such as short-term trade finance. On their part, exporters must reinforce their efforts to move into fast-growing emerging economies such as India and China. It is risky for the UK to rely excessively on the Eurozone given the problems its faces as a result of the sovereign debt crisis.”