Report says UK exports set to benefit from BRIC building

This will be driven by exports to so-called BRIC (Brazil, Russia, India, and China) countries and an improvement in competitiveness brought about by a weak pound.

The total value of UK goods and services exports will increase by 8.5 per cent a year over the next 10 years, according to ITEM, with the total value of UK goods and services into the BRIC countries to increase by 11.7 per cent a year to 2020.

Following a period of negative growth over the last two years, when the total value of goods and services exported overseas dipped by -1.8 per cent a year, opportunities to increase the UK’s market share in traditional strongholds, such as Europe and the US, are also likely to increase in value by 7.8 per cent and 8.6 per cent a year respectively — boosted by the steep devaluation in the pound over the last three years.

Andrew Goodwin, senior economic advisor to the Ernst & Young ITEM Club, believes that these positive factors should mean that net exports contribute around 0.5 per cent a year to GDP growth over the next five years.