UK Continues To Shine In Its Services Exports, While Goods Trade Disappoints

12th May 2024

Commenting on the latest ONS trade data for Q1 2024, Emily Fry, Senior Economist at the Resolution Foundation, said:

"While the UK's improving trade balance was a major contributor to strong economic growth in early 2024, the trade data is less rosy than it appears.

“The improving trade balance was driven by a sharp fall in imports, with good exports also falling and only services exports growing by 1 per cent, driven by travel and transport.

“This mixed picture continues a wider pattern in which the UK has under-performed on goods trade, which is down 19 per cent on its pre-Brexit trend, and relative to other advanced economies. In contrast, the UK has maintained its strong international position on services trade, and increased services trade relative to its pre-Brexit trend by 3.5 per cent, despite fears of ‘slowbalisation’.

“It’s high time politicians and policy makers acknowledged where the UK’s trade strengths really lie, and put high-value services at the heart of a new economic strategy."

NB - Figures are in chained volume measures, excluding precious metals.