We may not be in boom times but as the graphs from May 2023 show, there are reasons to feel a little more optimistic.
The number of businesses trading has recovered and remained steady, whilst the rate of closure has fallen. Costs for being in business are still high but reducing, sale prices for goods and services are to a degree under control.
More businesses still reported lower turnover month on month in April 2023 than saw an increase, yet the gap is narrowing after a difficult period.
The effects of the pandemic, war in Europe and ensuing inflation have not been easy to cope with but we are coping. Allowing for inflation, UK exports increased by 6.7% in 2022, still below levels 4 years earlier but a positive trend.
Alongside domestic trade, UK exports have not been ideal. Levels have decreased and the trade deficit grown, although the outlook has improved.
Likely turbulence aside, the reopening of China will help. The IMF believe that global demand will increase as 2023 goes on, with export opportunities coming from growth forecasts for China and India of over 5%.
The “America First” stance in the US and the related Inflation Reduction Act raised concerns. There will be an effect, although dialogue with their trading partners continues and this may not be as dramatic as suggested.
Our trade with the EU is down on pre Brexit times but not so far away and the relationship is moving on. As long as work continues to remove barriers and amend the current agreement, our largest market will remain so.
The Carnet Measure
ATA carnets are primarily designed to stimulate trade and are a fair measure of trade. For some sectors such as media production a standard part of life, for others part of the route to establishing trade links.
Demand for carnets has picked up for destinations across the globe and their use to enter the EU markedly so. They are an extra cost but also a system which has proven resilient and efficient in changing times.
Improved carnet use is a sign in line with others that opportunity may grow. We still need to seek this out, work with other nations and have business assistive government but 2023 might be a better year than we have seen recently.
If we can help, by all means see more information on ATA carnets. Whatever your needs, we hope that the trends beginning to appear work for you.