Britain's US And EU First Quarter Goods Exports Smash Last Year's Results

4th August 2023

Britain's first quarterly goods exports results for 2023 have significantly surpassed the same period last year. Exports to the UK’s key partners, the EU and USA, put Q1 2022’s figures firmly into the shade, says the international delivery expert ParcelHero.

The UK’s goods exports for the first quarter of 2023 soared past those for the same period last year, the latest Office for National Statistics (ONS) quarterly trade figures have revealed. Q1’s exports between the UK and its two key trading partners, the US and EU, significantly increased year on year.

Britain’s Q1 (January-March 2023) goods exports to the European Union were worth £47.6bn, a sizable rise on Q1 2022’s £44bn. Similarly, Britain’s goods exports to the USA were worth £14.9bn in the first quarter of 2023, a big jump over 2022’s Q1 result of £11.8bn. The international delivery expert ParcelHero says these results give renewed confidence the UK can avoid a recession.

ParcelHero’s Head of Consumer Research, David Jinks M.I.L.T., says: ’Recent talk of a UK recession appears to have been pessimistic. Though Britain’s total exports dipped in Q1 2023 compared to the final quarter of last year (October-December), looking back over the last few years, that’s become a traditional seasonal trend. Some recent analysis has perhaps overplayed the significance of this fall. In terms of year-on-year results, Britain’s trade with its main partners has soared ahead compared to where we were a year ago.

‘It’s not only British goods that have been in hot demand in the EU and US, so have British services, such as computing and banking. In fact, the UK’s total exports to the EU (both goods and services) were worth £83.4bn in Q1 2023, a steep rise on Q1 2022’s £74.6bn. Likewise, the UK’s combined goods and services exports to the US were worth £43bn, a huge rise on Q1 2022’s £34.9bn.

‘Perhaps most significantly, Britain’s exports to the entire world in Q1 this year mirrored the year-on-year success of its EU and US results. Britain’s total goods exports in Q1 this year were worth £99.7bn, eclipsing Q1 2022’s £86.1bn. The UK’s total exports of goods and services combined in Q1 2023 were worth £199.2bn, overwhelming Q1 2022’s £169.8bn.

‘However, post-Brexit problems with international trade have not entirely gone away. Britain’s Q1 2023 goods imports from the EU of £80.5bn show a significant imbalance with its exports of £47.6bn. It’s an imbalance that has grown since Brexit. The final Q1 before Brexit, Q1 2019, saw goods imports of £74.1bn and goods exports of £46.6bn. UK exports to the EU have failed to keep up with the growth of its imports, primarily due to the increased red tape and costs surrounding selling British goods in the EU.

‘While the UK’s trade with the USA has not suffered a similar upheaval, some significant hurdles in US trade remain. Most UK goods exported to the US that are valued at over $800 (the US import tax threshold) are still subject to tariffs of 0% to 37.5%, with the typical rate being 5.63%. ParcelHero’s USA page gives full details on Customs advice, sending food, prohibited items, etc.

‘The US is ParcelHero’s biggest individual overseas market. For expert advice on UK-US shipping, including Customs information, help for exports and prohibited items details, see: https://www.parcelhero.com/en-gb/international-courier-services/usa-parcel-delivery