UK exports to Brie countries set to soar.
The total value of UK goods and services exported to Brie countries-Brazil, Russia, India and China-is set to increase by 11.7 per cent a year up to 2020, according to research by the Ernst & Young ITEM Club, which makes economic forecasts. This compares with total growth in UK exports of 8.5 per cent a year during this period.
The forecast implies some significant structural shifts for the UK, driven by export re-orientation towards emerging markets and higher competitiveness. Just five per cent of UK exports currently go to the Brie economies.
The weak pound and growing consumer demand in emerging markets because of improving living standards and an expanding middle class will be the major drivers. Average household income in the Brie economies is expected to rise by 14 per cent a year up to 2020.
Service sector exports will continue to be key to the UK's performance over the next 10 years, with predicted growth of 8.4 per cent a year overall and 11.5 per cent for exports of services to the Brics. Financial services are expected to make the biggest contribution, with growth of 9.9 per cent a year in the next decade.
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|Publication:||Financial Management (UK)|
|Article Type:||Brief article|
|Date:||Apr 1, 2011|
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