LONDON (Reuters) – According to new research published Monday, 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 Aston University’s Lloyd’s Banking Group Center for Business Prosperity report, the UK performed particularly poorly due to a prolonged stagnation in productivity growth.
While all countries struggled with the uproar of COVID-19, the United Kingdom lost market share in its largest export markets – the United States and Germany, the study found.
“In a number of key export destinations – Germany, the UK and China – the UK appears to have experienced a stronger decline, a slower recovery and a decline in global competitiveness,” the report said.
“The decline in exports from the UK to the US turned out to be the strongest in absolute and relative terms, and the longest lasting of the major European countries (except France).”
Between 2017 and 2019, the UK increased total exports to Germany by 8.5% – less than the export growth of Italy (12%), the Netherlands (14%) and Spain (20%), as well as the United States (24%).
“This, to some extent, paints a picture of slowing UK exports to Germany following the 2016 Brexit referendum, which may indicate some disconnection between the two economies,” economists Jun Du and Oleksandr Shepotylo said in the report.
The investigation, based on United Nations trade statistics, also indicates that the UK has lost market share in China. here
“The combination of COVID, Brexit and the UK’s long-term productivity challenges will put UK businesses in an unfavorable position for the foreseeable future,” the report said.
The UK’s relatively low productivity has puzzled economies for years: explanations range from poor worker skills and low investment in research to demand-side factors such as the financial crisis.
($ 1 = 0.7225 pounds)
Reporting by Guy Faulconbridge, published by Louise Heavens