Brexit win for the Tories as post-EU growth hits British service exports

Remainers have been left embarrassed after new information evaluation revealed that there was an explosion in British exports for the reason that UK voted to depart the EU.

Between 2016 – the 12 months of the EU referendum – and 2022, Britain’s exports of companies world wide grew dramatically, by 17.8 % in actual phrases.

This represents the strongest progress within the G7, based on Telegraph analysis of OECD information.

The progress beats out Italy, Germany, France and vastly outweighs that seen by Japan and the US.

Only Canada achieved a near-similar improve in exports.

In 2022, Britain beat its earlier information, rising to £397 billion.

Despite warnings concerning the worth of the British pound after Brexit, an economics skilled from the University of Nottingham says that the weaker pound has aided the nation’s service export growth.

Professor Gregory Thwaites stated that whereas markets had judged that Brexit would hurt the financial system by proscribing exports, the decrease worth pound had actually helped service exports.

“You can even have a scenario the place Brexit type of boosts companies commerce by harming one other sector extra.

“It means that – somewhat counterintuitively – the flip-side to the much-highlighted weakness in goods is an improvement in services.”

Service exports include everything from Britain’s burgeoning film industry, enrolling students at UK universities and architecture.

Sophie Hale of the Resolution Foundation told the Telegraph that the rapid growth in services exports came despite companies selling less to the EU.

“It does look like there is a change in the focus of UK exporters in terms of focusing more on non-EU markets,” she said.

Ms Hale said that even while taking into account changing demands, the improvement in Britain’s services exports performance over the past decade holds up.

After the USA, the UK remains the second-largest exporter of services in the world, accounting for around half of what Britain sells to other countries – much higher a proportion of exports than the rest of the G7.

Thomas Sampson, an LSE professor, told the Telegraph that the UK’s success in services exports is largely down to specialising within those industries.

“As the UK has become increasingly specialised in those industries, we have seen it reflected in strong export performance for the services. For goods, we’ve seen over many decades the gradual decline of the UK’s manufacturing base and that obviously places a drag on such exports.”

Things may further improve over the coming years, as developing economies in China, India and Africa get richer.

As emerging economies move on from buying physical goods to improve their quality of life, they will increase the amount of imported services, such as education and entertainment.

Mr Sampson said he “would be surprised to see that over the next decade or two we move to a position where services account for the majority of the UK’s exports”.