Nigeria and India become the fastest growing markets for UK goods

09-Apr-2019

Nigeria and India were the top two fastest growing export destinations for UK goods in 2018, according to analysis by Santander Corporate & Commercial of the latest ONS export data. UK exports to Nigeria grew by 27% last year to £1.63bn, while those to India were up 24% to £5.52bn.

The analysis, which looks at the top 50 goods export markets, shows that the top 10 fastest growing markets in 2018 were predominantly made up of non-European Union countries. Alongside Nigeria and India, Thailand (up 19% to £1.55bn), Taiwan (up 18% to £1.37bn), and Canada (up 13% to £6.09bn) were all in the top 10. Greece was the fastest growing European market for importing UK goods, and ranked third overall (up 21% to 1.07bn).

John Carroll, head of international, Santander Corporate & Commercial, said: “It’s exciting to see British companies embracing new international trade opportunities, not just with established trading superpowers like the US, Germany and Japan but also in evolving markets such as India and Nigeria. Taking the leap into a new and less traditional market can seem daunting at first, but we know that companies who trade internationally often have stronger growth prospects and are more resilient against economic uncertainty at home.”

The UK exported £350bn in goods in 2018, up 3% versus 2017, and £279bn in services, up 0.2%. Overall, the UK’s total exports (goods and services) for 2018 were up 2% from the previous year to an all-time high of £629bn. However, year-on-year growth has slowed when compared to the previous year’s growth from 2016 to 2017 at 11%.

Regionally, exports of UK goods to the whole of Europe (including EU countries) were up by 3% compared to 8% in North America and 5% in Asia-Pacific. Asia-Pacific is now bigger than North America (£63bn vs. £61bn) in terms of export values for UK goods.

Santander UK has bolstered its engagement with India in recent years, signing a memorandum of understanding with Yes Bank, India's fourth largest private sector bank, in 2017 and leading a delegation of food and drink businesses to India last year.

Gautam Sehgal, India alliances director, Santander UK said: “India is a thriving market with a strong rate of economic growth. Its drive towards infrastructure expansion is well reflected in a 65% rise in exports of electrical energy infrastructure from the UK in 2018 alone. The data also shows a significant increase in automotive, advanced engineering and medical sector exports – industries which are considered major contributors to UK job creation and GDP. As the world’s fastest growing economy, India is a key international trading partner as the UK looks to expand its global connections.”

Recent Trailblazers research by Santander Corporate & Commercial found that high growth businesses still see the European Union as presenting the greatest opportunity for international growth. Nearly a third (31%) plan to increase sales in the EU over the coming year, with North America the second most popular region for international expansion (27%).

Helping businesses to export is a core priority for Santander, drawing on Banco Santander’s presence in 10 core markets such as the US, Brazil and Mexico as well as alliance partnerships with other banks in countries like France, China, Singapore and India.

Santander supports companies throughout their exporting journey, helping them to identify potential opportunities, running trade missions to connect businesses with new customers and suppliers, and introducing business to the services they need when setting up internationally.

Largest region by export value (within the top 50), for UK goods, in 2018

Region

Value, £million

Percentage growth from 2017

Europe

189,213

3%

of which European Union

167,883

4%

Asia & Pacific

63,037

5%

North America

61,082

8%

Arab States

16,038

-13%

South/Latin America

4,289

2%

Africa

3,746

3%

Top 10 export destinations for UK goods in 2018, by value

Country

Value £million

Percentage change from 2017

United States

54,991

7%

Germany

36,053

-3%

Netherlands

25,760

17%

France

24,412

1%

Ireland

22,188

9%

China

18,579

3%

Belgium

14,534

4%

Italy

10,732

4%

Spain

10,413

1%

Hong Kong

8,318

5%

Top 10 fastest growing export destinations (within the top 50) for UK goods, over one year

Country

Value, £million

Percentage change from 2017

Nigeria

1,634

27%

India

5,524

24%

Greece

1,066

21%

Thailand

1,545

19%

Taiwan

1,370

18%

Netherlands

25,760

17%

Norway

3,639

13%

Canada

6,091

13%

Japan

7,032

10%

Ireland

22,188

9%

 

Source: Santander UK analysis of ONS Top 50 UK export data, 2018

- Ends –

Breakdown of UK goods exports to Nigeria

Nigeria

2016

2017

2018

2017-18% Difference

% of 2018's Total Exports

Residues and waste from the food industries

754,116

3,450,112

6,546,146

90%

0%

Mineral fuels, mineral oils and products of their distillation

162,099,501

317,701,267

598,642,220

88%

45%

Cotton

14,997,548

15,393,260

25,303,763

64%

2%

Beverages, spirits and vinegar

14,753,268

12,647,520

17,466,629

38%

1%

Miscellaneous edible preparations

6,584,387

13,932,429

16,882,607

21%

1%

Vehicles other than railway or tramway rolling-stock

41,689,960

45,209,613

53,372,868

18%

4%

Ships, boats and floating structures

6,591,757

6,862,228

8,021,575

17%

1%

Essential oils; perfumery, cosmetic or toilet preparations

28,812,262

28,489,817

32,576,824

14%

2%

Textile articles; sets; worn clothing and worn textile articles; rag

26,048,226

33,001,183

36,873,568

12%

3%

Pharmaceutical products

27,376,352

39,410,601

38,002,094

-4%

3%

Breakdown of UK goods exports to India

India

2018

2017-18% Difference

Gems and Jewellery

$900m

300%

Electrical/gas turbines

$81m

300%

Measuring instruments

$61m

53%

Aluminium Scrap

$280m

51%

Cars

$50m

13%

Scientific instruments

$55m

11%

Electrical machinery

$91m

11%

Alcohol

$200m

9%

Automotive vehicle parts

$80m

0%

Aircraft parts

$90m

-9%

Iron waste & scrap

$186m

-21%

Aircraft parts

$90m

-9%

Breakdown of UK goods exports to Greece

Greece

2016

2017

2018

2017-18% Difference

% of 2018's Total Exports

Ships, boats and floating structures

2,526,926

3,713,247

27,472,671

640%

2%

Mineral fuels, mineral oils and products

53,455,608

45,517,546

157,959,993

247%

14%

Iron and steel

9,197,289

10,439,129

31,190,446

199%

3%

Copper and articles thereof

6,991,986

6,321,331

11,257,257

78%

1%

Plastics and plastic products

20,260,010

25,423,734

35,242,266

39%

3%

Nuclear reactors, boilers, machinery and mechanical appliances

64,351,144

68,007,894

83,103,657

22%

7%

Aluminium and articles thereof

13,540,695

18,824,748

22,964,643

22%

2%

Essential oils and resinoids; perfumery, cosmetic or toilet

18,734,840

23,792,968

28,513,681

20%

2%

Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments

26,221,347

32,433,537

33,637,394

4%

3%

Soaps, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, candles

9,262,580

19,769,347

20,464,257

4%

2%