Brexit boost as exports hit a record high of £616billion

BRITAIN’S exports around the world boomed to a record £616billion last year, official figures have revealed.

Ministers last night heralded the growth surge, which shows the trade deficit is narrowing, as a vote of confidence in the country ahead of Brexit.

International Trade Secretary Liam Fox said Britain was continuing to defy expectations two years on from the referendum vote to leave the EU.

The figures showed that 55 per cent of exports in 2017 were to countries outside the European Union, with the US representing almost a fifth of sales.

Overall exports of goods rose by 13 per cent to £ 339billion, while services increased by 7 per cent to £277billion.

The total trade deficit – the difference between UK exports and imports – narrowed by £5billion to £25.8billion. The US remained the UK’s top export market, buying over £112billion worth of goods and services in 2017, an increase of 8 per cent on the year before.

Other top markets included Germany, France, the Netherlands and Ireland. Exports to Germany

Ph ilip Hammond has warned the City of London to expect the French to lead a bid to drown financial services in red tape, it was reported last night. The Chancellor told senior figures from the UK sector that the EU, led by France, would seek to hobble their access to European markets, the Financial Times said.

totalled £56.8billion last year – the second highest figure after the US. For France the total was £ 40.4billion, the Netherlands £39billion and Ireland £34billion.

British exports to China jumped to £22billion, a 29 per cent rise from 2016. It is now the UK’s sixth largest export market, accounting for 3.6 per cent of sales last year compared with less than 1 per cent in 1999.

Trade with India also increased, with the UK exporting £6.7billion there in 2017, up nearly a fifth from £5.7billion in 2016.

The fastest growing export market for the UK since 2010 was Oman, with sales in goods and services rising 354 per cent to £3billion.

This was followed by Macedonia, which grew by 318 per cent to £1billion and then Kazakhstan which was up by 210 per cent to £2billion. Dr Fox, who has just returned from a nine- day trip around the world to boost trade, said: ‘British goods remain in global demand as exports to non-EU countries continue to grow.

‘It shows the confidence the world has in our goods and is important as 90 per cent of [growth in] global trade will come from outside the EU.

‘As an international economic department, we have a dynamic and experienced team who will negotiate free trade deals and make a success of Brexit.

‘We’re also supporting UK businesses in exporting more and talking to international businesses on why we should be the top destination for investment.’ The International Trade Secretary began his latest mission in Washington a fortnight ago, before flying to San Francisco and then Tokyo.

He said the talks in Japan were among the ‘most positive’ he has had. While there he met Japanese Prime Minister Shinzo Abe, the country’s economy minister Toshimitsu Motegi and local business leaders.

Brexit supporters last night said the latest trade statistics should be ‘another nail in the Project Fear coffin’. Remainers had claimed that exports would suffer if the UK backed leaving the EU.

Tory MP Anne Main said: ‘This is really encouraging news and highlights the confidence countries all across the world have in our markets and goods.

‘The overwhelming majority of future growth will come from outside the EU.

‘We should grasp the opportunity of Brexit and expand our trade with the rest of the world.

‘ This is another nail in the Project Fear coffin which should have been dead and buried a long time ago.’ The International Monetary Fund has said that 90 per cent of growth in the next decade will be outside the EU.