Germany’s exports now growing faster than UK’s
3 Oct, 2017,
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Germany’s exports are now growing faster than the UK’s as the weakened pound fails to deliver the boost that some analysts had predicted.
Previously, the UK’s strong performance had been spurred by a pickup in the global economy and the fall in the value of sterling, which made British products more competitive.
However, weak sterling has also pushed up the price of UK firms’ inputs, which in turn has caused them to raise the prices of their exports, research from accountants BDO shows.As a result, export growth for UK firms weakened in the third quarter of the year, according to an index compiled by the Centre for Economics and Business Research on behalf of BDO. Germany’s industrial firms have powered ahead over the same period, the index shows. Germany’s export growth index – which combines data from a number of official sources to chart annual growth in total exports – has risen to 106.6 in the third quarter of this year, up from 101.6 in the previous quarter.
