HMRC statistics show quarterly fall in regional exports

Latest figures from HMRC show that although North East exports fell in the last quarter, the value of exports has risen over the past year.

The value of exports from the region during the final three months of 2012 was £3.205bn, a decline from the annual peak of £14.125bn.

This decrease is a 5.72% fall on the previous quarter, and represents an annual total of £13. 691bn.

However during the entire of 2012 the value of North East exports grew by £158m due to high growth markets in Asia.

Exports to Asia and Oceania grew by over a quarter in 2012 and are now worth £1.8bn representing the North East’s third-largest export markets.

Kenny McKay, Partner in KPMG’s Northern Restructuring practice, said: “High growth markets are definitively where the prize of prosperity lies so it’s good to see the North East’s sales to Asia and Oceana rise by nearly £400m to £1,814m in 2012.

“While the overall export data held steady, growth was somewhat stifled by a fall in sales to the EU, which was expected given the economic turmoil in this market during the last year or so.

“However, the geography of growth lies in the East and Africa. After all, GDP growth in the next five years is forecast at between 3.3% and 8% in the BRIC countries compared to 1.9% in the EU and 1.6% in the UK so the region’s entrepreneurs need to be brave and find ways to enter these - and other - new and very different markets.

“Really understanding a new market and precisely how its idiosyncrasies impact on a product or service is critical, so my top tip is do the due diligence.”

According to the latest quarterly figures, released today, there was a considerable fall in exports to the USA, with a 12-month export value of £1.859bn compared to £2.58bn in the past year.

Despite this America remains the largest single market for North East goods.

Exports of Iron and Steel have increased by 118 per cent, giving a total of £869m while road vehicles exports were up by 4.49 per cent up, total of £5.357bn.

There was also an increase in organic chemicals, 11.43 per cent to give a total of £842m.

David Coppock, UK Trade & Investment (UKTI) Regional Director said:“It is disappointing that we have seen a dip in exports during the final quarter of 2012, which can be attributed in part to the fall in exports from the region to the USA.

“However, we need to remember it follows several record-breaking performances and our annual total is still up on the 2011 figure.

“Having said that, we cannot afford to be complacent and I would urge companies to renew their efforts to grow their business overseas and UKTI will continue to work hard with its many partners to help ensure they have all the support they need to succeed.

“As part of our efforts to do this, we will be hosting a special Export Week – High Growth Markets next month.”