Weighing up the positives and negatives
While UK importers have been badly affected by the Brexit vote and Sterling uncertainty, HMRC’s newly-published overseas trade statistics for July 2016 show a largely positive outcome for importers, who fared unusually well in what is an historically quiet month.
Doron Cohen, CEO of Covercy, a cross-border business payments service which claims to offer up to 80% cheaper transactional fees than traditional banks, said: “The figures show how starkly importers in the UK were affected by the vote to leave the EU.
“They clearly scaled back their activities significantly in July due to a huge depreciation in the value of sterling, with the currency hitting a 31 year low against the dollar and a 10% drop in trade-weighted value after the vote to leave.
“Despite a 13% increase year on year for imports in Britain, it is quite clear that the UK’s importers were dealt a huge blow due to the uncertainty caused by the Brexit vote in July.”
“Meanwhile for exporters, the figures are quite positive. July is traditionally quite a quiet month, however, due to such decreases in the value of sterling, it became much cheaper to do business. This meant, despite a minor decrease, exports actually held up quite well, despite it being off-peak season.”