Category-wise Imports of Services by UK in 2008
Top 10 countries in terms of value of services imported by UK in 2008
UK Services Exports and Export Growth
Category-wise Exports of Services from UK in 2008(GBP Mn)
Top 10 countries in terms of value of services exported from UK in 2008
UK is considered service basket of the world. UK’s service trade potential can be gauged by the fact that it has not recorded service trade deficit since 1966.Infact the service trade surplus moved from 44.8 Bn GBP in 2007 to 54.5 bn GBP in 2008. During the latest year, exports of services increased by 13.1 per cent while imports of services grew by 9.5 per cent (compared to growths of 12.2 per cent and 6.4 per cent respectively in 2007). Of the 11 main product groupings, nine showed surpluses and two (travel and government services) showed deficits. The increase in the surplus was mainly driven by an increase in the financial services surplus.
A comprehensive analysis makes it clear that UK’s imports of services have grown steadily between 2000 and 2008 at a CAGR of more than 7.1%.Out of the total imports of services of UK, travel services form the largest chunk of 32%, followed by other business services and transportation with a share of 21 and 18 per cent of share respectively.
The imports into UK from USA were highest in terms of value in 2008. Other major contributors to UK’s total imports of services in 2008 were Spain, France, Germany and Italy. The top 10 countries in terms of value of services imported in 2008 contributed to 65% of the total services imported by UK in 2008.The noteworthy point here is the absence of BRIC countries from this list. Looking at the future global Economic scenario, it is important here that UK engage itself with the BRIC nations to ensure the sustainability of the service trade.
UK’s exports of services have grown steadily between 2000 and 2008. The growth has been between 5% and 11% for most years. Year 2004 recorded the highest growth of 11%. Exports have grown at a CAGR of 9.6% from 2000 to 2008.
From the basket of total service exports of UK, the largest contributor is financial services with 29% and other business services with 28% share of UK’s total services exports.
The exports from UK to USA were highest in terms of value in 2008.The significance of US is very clear from the fact that US alone account for 21% of UK service export and the second competitor Germany lies far behind with the share of 7%. Other major contributors to UK’s total imports of services in 2008 were the Netherlands, France and Ireland. The top 10 countries in terms of value of services exported in 2008 contributed to 58% of the total services exported by UK in 2008.
The UK service export too has followed the Import trend in terms of its engagement with BRIC nations. Though BRIC countries are moving up in the ladder in the trade collaboration, the movement seems little to contribute in moving their rank up.UK needs to take affirmative action to counter this situation before it runs out of time.