Nigeria and India become the fastest growing markets for UK goods
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%
