UK Businesses Cheered By 0.7% Rise In GDP, But Imports And Exports Have Fallen

28th June 2024

The UK's real GDP (gross domestic product) is estimated to have grown by 0.7% in Quarter 1 (January-March) 2024, according to new figures released today by the Office for National Statistics (ONS). This figure was revised up from a first estimated increase of 0.6%. The ONS also revealed GDP increased by 0.3% compared with the same quarter a year ago.

However, as the UK emerges from recession, the international delivery expert Parcelhero warns that, behind the positive headlines, other economic results don’t look so rosy for UK exporters and importers.

Parcelhero’s Head of Consumer Research, David Jinks M.I.L.T., says: ‘In the lead-up to next week’s general election, the big issue for Britain’s SMEs, importers and exporters is the economy, stupid. However, the encouraging GDP rise in Q1 2024 stalled in April, according to further ONS data, with zero growth.

‘Services output grew by 0.2% in April, but that was offset by falls in both production output (-0.9%) and construction output (-1.4%).

‘Further new ONS figures on the UK’s balance of payments also reveal the unwelcome news that the value of UK goods exports decreased by £1.4bn, to £91.2bn, in Q1 2024, and UK goods imports fell by £5.8bn to £135.8bn.

‘The largest decreases in exports were recorded in the following products:

finished-manufactured goods (£0.9bn)
other fuels (£0.4bn)
semi-manufactured goods (£0.3bn)
‘The fall in finished and semi-finished goods exports will be of particular concern to UK companies struggling to find new markets. The largest fall in imports was in finished manufactured goods (£3.6bn)

‘Looking at these assorted economic results, it’s a mixed report card for the Conservative Government going into next week’s election.

‘Only Britain’s exports to the US kept figures from being more disappointing. UK to US goods exports saw a heartening rise from £59.3bn to £61.7bn between 2022 and 2023, a £2.4bn increase. That’s despite the fact a UK-US trade agreement seems no closer. It’s small wonder that the US is also Parcelhero’s biggest individual overseas market. Sending a parcel to the USA is now no more difficult than shipping to the EU.

‘For expert advice on UK-US shipping, including useful frequently asked questions (FAQs), help for exporters and prohibited items details, see our USA guide: https://www.parcelhero.com/en-gb/international-courier-services/usa-parcel-delivery