UK's SME exports remain static since pandemic: BCC

30 Jan '24

1 min read

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Insights

UK SME exports remain static since the pandemic, with less improvement than pre-pandemic period.
In Q4 2023, only 26 per cent of exporters saw an increase, compared to 34 per cent in domestic trade.
SME manufacturers face volatility, with 28 per cent reporting increased exports.
The post-pandemic period shows a divergence between domestic trade and exports.

UK’s small and medium-sized enterprises’ (SME) exports have been broadly static since the pandemic and remain far less likely to see improvements when compared to the pre-pandemic and pre-Brexit period, as per the Trade Confidence Outlook by the British Chambers of Commerce’s (BCC) Insights Unit.

In the fourth quarter (Q4) of 2023, 34 per cent of firms saw an increase in UK trade, compared to only 26 per cent of exporters, marking an eight-percentage-point difference. The proportion of businesses reporting decreased overseas sales began to rise in the run-up to Brexit and has remained persistently high since then, as per the outlook.

The situation appears to be more volatile for SME manufacturers compared to other sectors. In this sector, 28 per cent reported an increase in exports, 44 per cent reported no change, and 28 per cent reported a decrease.

A notable divergence has emerged between domestic trade performance and exports post-pandemic. While UK sales saw a sharp increase as the economy reopened in 2021, overseas orders did not experience a corresponding rise. This indicates that SME exporters have been disproportionately affected by global trade headwinds caused by COVID-19 lockdowns and new trade barriers with the European Union.

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