CBI encourages Government to re-orientate UK economy toward exports

News Article - 22 November 2011
Category: Business

The Government is being encouraged to re-orientate the national economy toward exports, with the potential for creating £20 billion for the UK economy by 2020, according to the Confederation of British Industry (CBI).

The business group has urged the Government to combat the UK's current "lacklustre" trading performance and match the EU average of one-in-four small and medium-sized enterprises (SMEs) exporting by 2020.

John Cridland, CBI director general, believes SMEs need to have greater access to finance in a bid to aid exports.

The report ahead of the CBI's annual conference indicates the Government should aim to increase net exports from -2.4 per cent in 2010 to 2.5 per cent by 2016.

Mr Cridland added: "The UK has a proud history as a great trading nation, but in recent years our performance has been lacklustre.

"Export success will be one of the key drivers of growth, but for too long we have been over-dependent on advanced economies for our trade.

"The continued crisis in the Eurozone underlines just how important it is for the UK to diversify its export efforts to high-growth countries. The new middle classes in emerging economies will have needs that our niche, high-end producers are more than able to fulfil."

The UK's overall share of global exports has fallen considerably from 5.3 per cent at the turn of the Millennium to 4.1 per cent in 2010. Meanwhile, Germany has managed to increase its share, despite the global recession, from 8.9 per cent to 9.3 per cent in the same timeframe.

Lord Green, Minister for trade and investment, welcomed the report from the CBI and agreed the challenge for the country as a whole is to increase exports.

"Trade has been a drag on growth for far too long. We need more companies to start selling overseas and moving out of their comfort zones and into high-growth markets," he said.

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