EXPORT OF SERVICES POSITION PAPER – 8.7.20
The UK is the second biggest exporter in the world – of services. How can we exploit this in the new world order?
This online Panel Discussion – organised by Devonshire House and collaborating with The Institute of Export and International Trade and with BDO on 8.7.20 – is aimed at discovering what this statement means and where the opportunities lie in the hugely uncertain business world now unfolding. This Position Paper offers additional information to those seeking a more in-depth understanding – primarily senior executives who ought to be exporting or exporting more. There is also an element of celebration about this – something at which the UK is genuinely good at in world terms – and needs to capitalise on it.
Headline Figures.
The UK is the second biggest exporter of services in the world. In 2019, the UK exported £326bn in services (with a surplus of £104bn) and £372bn in goods (with a deficit of £130bn.) A net deficit seems to be the norm.
These are current figures from UNCTAD for services exports of the Top Five exporting (Developed) Nations in the world in 2018.
| Exporter (Ranked by value) |
Value (Billion US$) |
Share in world total (%) |
Annual growth rate (%) |
|---|---|---|---|
| United States of America | 828.4 | 14.2 | 3.9 |
| United Kingdom | 376.2 | 6.4 | 5.5 |
| Germany | 331.2 | 5.7 | 7.7 |
| France | 291.5 | 5.0 | 5.9 |
| China | 266.8 | 4.6 | 17.0 |
| 3969.7 | 67.9 | 6.8 |
Trade in Services – Seasonally Adjusted £m
| Exports | 2018 | 2019 |
|---|---|---|
| Manufacturing and maintenance services | 5691 | 6443 |
| Transport | 29469 | 30929 |
| Travel | 36431 | 39122 |
| Construction | 2671 | 2943 |
| Insurance and pension services | 19425 | 20114 |
| Financial | 63222 | 62916 |
| Intellectual property | 19721 | 19801 |
| Telecoms, computer and information services | 23960 | 23288 |
| Other business Services | 98796 | 112584 |
| Personal, cultural and recreational services | 4584 | 4478 |
| Government | 2900 | 3536 |
| Total | 306870 | 326154 |
| Imports | 2018 | 2019 |
|---|---|---|
| Manufacturing and maintenance services | 2151 | 2797 |
| Transport | 25524 | 25680 |
| Travel | 51742 | 55727 |
| Construction | 2090 | 2821 |
| Insurance and pension services | 3095 | 3120 |
| Financial | 17017 | 19552 |
| Intellectual property | 10860 | 13269 |
| Telecoms, computer and information services | 10751 | 10458 |
| Other business Services | 66285 | 80871 |
| Personal, cultural and recreational services | 4095 | 4430 |
| Government | 3682 | 3605 |
| Total | 197292 | 222330 |
| Surplus/Deficits | 2018 | 2019 |
|---|---|---|
| Manufacturing and maintenance services | 3540 | 3646 |
| Transport | 3945 | 5249 |
| Travel | -15311 | -16605 |
| Construction | 581 | 122 |
| Insurance and pension services | 16330 | 16994 |
| Financial | 46205 | 43364 |
| Intellectual property | 8861 | 6532 |
| Telecoms, computer and information services | 13209 | 12830 |
| Other business Services | 32511 | 31713 |
| Personal, cultural and recreational services | 489 | 48 |
| Government | -782 | -69 |
| Total | 109578 | 103824 |