Chemicals decline ‘will hit exports’

A DECLINE in chemicals sales over the next four years is expected to dent North West exports, according to the UK Goods Export Monitor by accountancy firm EY.

The study, which tracks international goods export data by region, sector and trade routes, predicts exports in the region will decline by 1% from £26bn in 2012 to £24.7bn in 2017.

Despite being the fourth largest UK goods exporter in terms of size, the North West will fall behind the UK average of 0.3% annualised growth in UK goods exports to 2017, and also behind the 1% European average, said EY.

North West chemicals exports are forecast to decline by 10.1% by 2017. However, the region is predicted to achieve small gains in the export of road vehicles in the same period.

Simon Allport, North West regional partner at EY, said: “While the UK services sector remains the principle engine of recovery, UK goods – which account for nearly half of all UK exports – still make a vital contribution to the economy.

“Although the forecast is not as strong as we would like in the region, there are some fantastic examples of successful North West exporters, and there is an opportunity to turn the export picture around, such as steady rises in road vehicle exports.

“The investment by Government in dredging the Mersey Estuary could unlock the key to growth in the region. This will ensure that the Port of Liverpool is able to accommodate larger-sized container ships, which will contribute to the development of the region as a transport hub and make the North West more attractive for exporting goods.”