LONDON (Reuters) – The UK lost market share in the United States, Germany and China during the COVID-19 pandemic due to global trade chaos, Brexit and poor productivity, according to new research published on Monday.
The UK has performed particularly poorly due to prolonged stagnation in productivity growth, according to a report by Aston University’s Lloyd’s Banking Group Center for Business Prosperity.
While all countries are grappling with the rumor of COVID-19, the UK has lost market share in its largest export markets – the United States and Germany, the research showed.
“In some major export destinations – Germany, the United Kingdom and China – the United Kingdom appears to have deteriorated sharply, experienced a slower recovery and seen its global competitiveness waning,” the report said.
“The decline in the UK to the US has been the strongest in absolute and relative terms and the longest among the largest European countries (excluding France).”
Between 2017 and 2019, the United Kingdom increased total exports to Germany by 8.5% – less than the export growth achieved by Italy (12%), the Netherlands (14%) and Spain (20%), as well as the United States ( 24)%).
“This gives some idea of the slowdown in British exports to Germany following the 2016 Brexit referendum, which may indicate a decoupling between the two economies,” economists Jun Du and Oleksandr Shepotylo said in the report. said.
The research, based on United Nations trade statistics, also indicates that the United Kingdom has lost market share in China. here
“The combination of COVID, Brexit and the UK’s long-term productivity challenges will put British businesses in an unfavorable position in the foreseeable future,” the report said.
The relatively poor productivity of the UK has surprised economies for years: explanations range from poor employee skills and low research investment to factors such as the financial crisis.
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Reporting by Guy Faulconbridge, Edited by Louise Heavens