UK trade plummets post-Brexit as goods exports shrink by a fifth

The UK’s trade performance has weakened significantly since 2019. A new report highlights a sharp decline in goods exports and a growing reliance on services, with Brexit identified as the primary cause. Between 2019 and 2024, the UK’s share of global goods exports fell by a fifth. This drop left exporters approximately £74 billion worse off. The country also slid from the world’s 11th-largest goods exporter to 14th, marking the steepest decline among G7 nations.

Key sectors such as medicines, electronic microcircuits, and data processors have seen notable losses. Smaller firms have struggled the most under the new trade conditions. Over half of UK exporters, 54%, reported that the EU trade deal had made selling into the bloc more difficult. Only 16% felt it had helped them expand their exports.

Meanwhile, services now make up 59% of total UK exports, an increase of 11 percentage points since 2019. Sophie Hale of the Resolution Foundation stated that this shift should not be seen as a negative development. The think tank also dismissed higher energy prices or cheap Chinese goods as reasons for the trade downturn, placing the blame firmly on Brexit. The UK’s trade position has changed markedly since the referendum. Goods exports have declined sharply, while services have grown in importance. Exporters continue to face challenges, with many reporting increased barriers to selling in the EU.