Scots exports suffer £4bn hit as trade with UK and EU plummets

● New trade envoys to boost activity ● Brexit and North Sea slump blamed

Scotland’s economy has suffered a £4 billion blow as the value of exports around the globe shrunk in 2016, it has emerged.

Firms selling goods south of the Border were the big losers as exports to the rest of the UK fell by £4.4bn, down to £45.8bn. Scottish exports to EU countries also decreased by £105 million (0.8 per cent) to £12.7bn in 2016.

It means the UK market is still worth more than three times as much to Scottish firms as the rest of the EU, although the relative significance of the UK “internal market” has shrunk.

There was a big increase in exports to non-eu countries of £565m (3.4 per cent) to £17.1bn.

But the overall picture saw a £3.9bn fall in total exports both internationally and to the rest of the UK to £75.6bn, down by 5 per cent.

Economy secretary Keith Brown said trade envoys have been appointed by the Scottish Government in a drive to “boost” export performance at home and abroad.

“We’re continuing to enhance the SDI presence in Europe and we’re establishing new international innovation and investment hubs,” Mr Brown said.

Mr Brown added: “These figures do, of course, cover a year of considerable uncertainty with the EU Referendum, the downturn in the oil and gas sector and the closure of Longannet – all of which have had an impact on these historic figures.

“However it is clear that if the UK government continues in its plan to withdraw from the European single market and the customs union, putting barriers in the way of international exports, that our economy could be severely damaged in future.”

A 22 per cent rise in financial services exports along with a 5.3 per cent rise in food and drink helped boost the international figures while a drop in utilities exports of more than a quarter drove the rest of the UK decrease.

The largest decrease in the EU exports was professional, scientific and technical activities – down 11.4 per cent.

Scottish Secretary David Mundell said: “These figures from the Scottish Government again show that Scotland’s trade with the rest of the UK is worth nearly four times that with the EU. We know that more than half am Scottish jobs depend on the vital UK internal market.”

Liberal Democrat MP Christine Jardine said: “These export statistics show that it is imperative that Scotland retains its place in both the UK and the EU.”