UK Trade in the Time of COVID-19:A Review

Abstract

This paper offers a detailed review of the UK’s trade performance during the COVID-19 crisis and reflects on how this may be revived. During 2020, UK goods exports contracted more sharply than those of its international peers. Statistics suggest that UK had a deeper decline and slower recovery than Germany, Italy, Spain and the US. Further, the trends from 2017 to 2019 show a weakening in the UK’s global competitiveness, suggesting a more persistent development against the backdrop of productivity slowdown and Brexit uncertainty. We analyse the confluence of internal and external factors that impact on UK trade and emphasise the importance of boosting productivity in the recovery from the COVID crisis and Brexit.