British exports to European Union nations decline by 45%
Exports from the United Kingdom to other European nations have pummeled recently. This can be linked to the coronavirus pandemic and Brexit.
Britain trade with European nations shows a decline
British goods exports to other EU countries fell about 45% last month. This is according to the results coming from the Office of national statistics. The report also suggested imports from European nations into British foils pummeled by 30%. This is the highest drop since records started in 1998 and also the first negative results since trading policy between Britain and Europe started.
The agency has said factors that affected the decline are temporary and should cease to exist before the second quarter. Moreover, fresh data shows that the British economy declined by 3% last month after the initiation of the last lockdown. Imports and Exports to European countries declined and the trade values fell about £6.1 billion.
The report claims that the fall notices were primarily visible in transport, machinery, and chemical products. Also, car sales, drugs, and other health products remain affected. The top auditing firm, KPMG said that a major factor may be the recently initiated Brexit. However, trade between the UK and non-European nations grew by 1.9%. KPMG also said some huge piling of goods in December has also caused these trade issues.
The new strain of the UK virus also a cause for the decline
This is because some firms may have been using stocks saved instead of purchasing another product. Another important factor might have been the new strain of coronavirus, which has caused several lockdowns across Europe and has claimed many lives.
Financial experts have insisted that until the vaccinations are about 90%, people shouldn't expect too many changes in economic figures. However, as the UK and other European nations ease lockdown protocols gradually, there might be a slight volume of trade transactions in the world.