LONDON (Reuters) – The United Kingdom 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 had particularly poor results due to long-term stagnation in productivity growth, according to a report by the Lloyd’s Banking Group’s Center for Business Prosperity at Aston University.
While all countries faced the tumult of COVID-19, the United Kingdom lost market share in the largest export markets – the United States and Germany, the research showed.
“In some key export destinations – Germany, the United Kingdom and China – the United Kingdom appears to have declined sharply, to have a slower recovery and to see its global competitiveness decline,” the report said.
“The decline in exports to the United States from the United Kingdom was strongest in both absolute and relative terms and the longest of the major European countries (excluding France).”
Between 2017 and 2019, the United Kingdom increased total exports to Germany by 8.5% – less than the increase in exports by Italy (12%), the Netherlands (14%) and Spain (20%), as well as the United States (24%). )%).
“To some extent, this illustrates a picture of the slowdown in UK exports to Germany following the 2016 Brexit referendum, which may indicate some decoupling between the two economies,” economists Jun Du and Oleksandr Shepotylo said in the report.
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 companies in an adverse position for the foreseeable future,” the report said.
The UK’s relatively low productivity has puzzled economies for years: explanations range from weak employee skills and low investment in research to demand-side factors such as the financial crisis.
($ 1 = £ 0.7225)
Reported by Guy Faulconbridge, edited by Louise Heavens