Corporate foreign exchange news
UK exports 'to focus on BRIC countries'
Monday, 07 February 2011 09:01:21 GMT

Published by Zeb BhamThe value of exports from the UK to emerging markets could rise by around 12 per cent per year for the next decade, a new report suggests.A study by the Ernst & Young ITEM Club reveals that the robust export growth could contribute around 0.5 per cent a year to GDP growth over the coming five years.The Outlook for UK Exports report states that the total value of goods and services from the UK going to BRIC countries could increase by 11.7 per cent per year until 2020.Such growth does imply significant structural re-orientation for UK exporters, the report notes.Andrew Goodwin, senior economic advisor to the Ernst & Young ITEM Club, said the government has a key role to play in improving access to developing economies by removing regulatory obstacles."Government policy should also be focused on supporting competitiveness through improving skill levels and providing incentives to invest, which would help to close the productivity gap with Germany," he added.The pound is likely to remain relatively weak on the foreign exchange markets, the report noted, adding that this should help the countries exporters to expand their operations.So far, the country's exporters have failed to gain significant market share since the recession, the Guardian reports.For more information on international payments, visit our Smart FX site



