Value of goods exports in the UK - Data and Analysis (2000-2032)

Over the five years through 2025-26, IBISWorld expects that the value of goods exports to increase at a compound annual rate of 9% to reach £925.4 billion. The total value of goods exports is the product of the volume of goods exported each year and the price of the exported goods. The strength of UK exports is determined by the competitiveness of the pound, export pricing and demand from key export markets. The most important factor is demand from key export markets, which depends largely on economic conditions in those countries. The value of the pound has a prominent effect on the value of exports, because a low value of the pound makes UK exports cheaper on foreign markets. The overall effect depends on the price elasticity of exports i.e. the proportional change in demand as a result of a change in the relative price of exports. The main goods exported by the United Kingdom are machinery and transport equipment, chemical products and mineral fuels, lubricants and related materials.Early in the period there was a surge in exports off the back of the low value of the pound as a consequence of the economic uncertainty created by the decision to leave the European Union. Following the vote, the sterling fell sharply against many major currencies, including the dollar and euro, boosting the competitiveness of British goods on foreign markets. This contributed towards a rise of 11.2% in the value of the goods exports in 2016-17 and 8% in the following year. The continued depreciation of the pound encouraged further rises in the value of total goods exports over much of the rest of the period. Additionally, the low value of the pound increased the competitiveness of British exports, which increased volumes and boost the total value of exports. The value of the pound has since increased, strengthening against other key currencies such as the euro and the US dollar.In 2020-21, the value of goods exports decreased by 12.5%. The COVID-19 pandemic over the year led to economic decline across a number of important trading partners and a decline in UK manufacturing. According to the ONS, the largest fall in goods export has been in transport machinery. UK car manufacturing output fell with major car manufacturers halting production for several weeks in April 2020. Lockdown measures remained in place throughout the year which weighed on UK output and exports. Exports registered an overall increase in 2021-22, supported by reopening of foreign economies as lockdown restrictions are eased. Despite this supply chain restrictions persist to weigh on growth of exports. Exports recovered in 2021-22 rising by 16% as global activity recovered. The total value of exports rose sharply in 2022-23 due to inflationary pressure. Export are forecast to fall by 1.5% in 2025-26.