UK Exports and Imports Since 2020: Impact on Global Trade and Economic Growth
The United Kingdom, a major global trading nation, has navigated significant changes in its export and import activities since 2020, shaped by the COVID-19 pandemic, Brexit, and global supply chain disruptions. These trade flows, supported by international trade frameworks, influence economic growth, employment, and global market dynamics. This article examines UK export and import trends from 2020 to 2025, their impact on incomes and employment, and their implications for developing countries and global trade, with data accurate as of May 2025.
Overview of UK Trade Since 2020
Since 2020, UK trade has been volatile due to global disruptions and the transition following the EU exit in January 2020. In 2020, total UK exports of goods and services were $801 billion, an 11.2% decline from 2019, driven by pandemic-related restrictions. Imports fell to $852 billion, down 12.8%. By 2022, exports rebounded to $1.033 trillion, up 11.06% from 2021’s $929.8 billion, while imports rose to $1.1 trillion. In 2023, goods exports decreased by 2.09% to $521 billion, and goods imports dropped by 3.64% to $791 billion. Services exports, however, grew to $512 billion in 2023, up 19% from 2019. In Q3 2024, total exports reached £209.9 billion, with imports at £220.5 billion, resulting in a trade deficit of £10.6 billion. By February 2025, the trade deficit narrowed to £4.8 billion, with exports up 4.6% and imports up 2.6% over the prior three months.
Services trade has been a strength, with exports to the EU in 2024 19% above 2019 levels in real terms, and non-EU exports 23% higher. Goods exports, however, lagged, with 2024 EU goods exports 18% below 2019 levels and non-EU exports 14% lower, reflecting Brexit-related adjustments and inflation pressures.
[](https://commonslibrary.parliament.uk/research-briefings/cbp-7851/)[](https://commonslibrary.parliament.uk/research-briefings/sn02815/)[](https://trendeconomy.com/data/h2/UnitedKingdom/TOTAL)Key Trading Partners and Commodities
The UK trades with over 160 nations, with the EU, United States, and China as top partners. In 2024, the EU accounted for 41% of UK exports (£358 billion, 48% goods, 36% services) and 51% of imports (£454 billion). The U.S. was the largest single export market at 13.9% of total exports, followed by China (9.1%), Germany (7.6%), Netherlands (6.6%), and Ireland (5.7%). For imports, Germany led, followed by the U.S. and China.
[](https://commonslibrary.parliament.uk/research-briefings/cbp-7851/)[](https://www.worldstopexports.com/united-kingdoms-top-exports/)In 2023, top goods exports included machinery (16.6%, $86 billion), precious metals like gold (15.5%, $80 billion), vehicles (9.65%, $50 billion), and mineral fuels (8.18%, $42 billion). Imports were led by machinery (12.2%, $97 billion), mineral fuels (11.6%, $92 billion), vehicles (11.4%, $90 billion), and electrical equipment (9.34%, $73 billion). Services exports, particularly financial services and IT, contributed significantly to the trade surplus, with a £194 billion services surplus in 2024 offsetting a £226 billion goods deficit.
[](https://commonslibrary.parliament.uk/research-briefings/sn02815/)[](https://trendeconomy.com/data/h2/UnitedKingdom/TOTAL)Impact on Incomes and Employment in the UK
UK trade drives incomes and employment, particularly in export-oriented sectors. Financial services and technology exports, concentrated in London and the South East, support high-wage jobs, with export-related roles offering 10–15% higher salaries than non-export jobs. In 2022, exports supported 6.8 million jobs, with services exports contributing 3.5 million, especially in professional and business services. Regions like Scotland, with £34 billion in goods exports in 2022, benefit from oil and machinery exports, boosting local incomes.
[](https://www.gov.uk/government/statistics/uk-trade-in-numbers/uk-trade-in-numbers-web-version)Imports lower consumer prices, enhancing purchasing power. Imported vehicles and electronics, making up 20.6% of goods imports, keep costs competitive, benefiting low-income households. However, the trade deficit, £32 billion in 2024, raises concerns about manufacturing job losses due to import competition. Post-2020 retraining programs have shifted workers to high-demand sectors like renewable energy and IT, mitigating some impacts.
[](https://commonslibrary.parliament.uk/research-briefings/sn02815/)Implications for Developing Countries
UK trade significantly impacts developing countries, which rely on access to its market. Lower tariffs boost export revenues for nations like India and Bangladesh. For example, Bangladesh’s textile exports to the UK, valued at £3.2 billion in 2023, have supported 2 million jobs and reduced poverty by 6% in export regions since 2020. Similarly, UK imports of agricultural goods from Kenya have increased household incomes by 7–9%. However, non-tariff barriers, such as stringent food safety standards, limit African exporters’ access, with compliance costs reducing their market share by 10% since 2020.
[](https://www.worldstopexports.com/united-kingdoms-top-exports/)Protectionist measures, including post-Brexit trade adjustments, raise costs for developing countries integrated into global value chains. For instance, UK tariffs on certain Asian goods disrupt supply chains, impacting Vietnam’s electronics exports. International trade frameworks that reduce such barriers enable developing nations to diversify exports, as seen in projections of significant job creation in Africa by 2030 through regional initiatives.
Challenges and Criticisms of UK Trade Policies
The UK’s trade deficit, £303.1 billion in 2024, up 11.4% from 2023, fuels debate about over-reliance on imports. Critics argue that importing more than exporting weakens manufacturing, with goods imports exceeding exports by £226 billion in 2024. Inflation-adjusted data shows 2023 goods imports and exports were lower than 2018, reflecting volatile pricing trends. Others note that imports lower consumer costs and attract foreign investment, balancing economic impacts.
[](https://www.worldstopexports.com/united-kingdoms-top-exports/)[](https://commonslibrary.parliament.uk/research-briefings/sn02815/)[](https://www.ons.gov.uk/economy/nationalaccounts/balanceofpayments/articles/uktradeingoodsyearinreview/2023)Developing countries face challenges accessing the UK market due to post-Brexit non-tariff barriers. For example, African exporters struggle with new customs requirements, increasing costs by 5–8%. UK agricultural subsidies, £3 billion annually, distort global markets, reducing opportunities for developing nations’ farmers. Recent negotiations aim to enhance technical assistance to address these barriers.
[](https://commonslibrary.parliament.uk/research-briefings/cbp-7851/)Data Summary: UK Trade Metrics (2020–2025)
The following table summarizes key UK trade metrics from 2020 to 2025, highlighting exports, imports, and trade deficits.
| Metric | 2020 | 2022 | 2023 | 2024 (Q3) |
|---|---|---|---|---|
| Goods Exports ($B) | 408 | 532 | 521 | 55.8 |
| Goods Imports ($B) | 492 | 821 | 791 | 100.9 |
| Services Exports ($B) | 393 | 501 | 512 | 59.7 |
| Trade Deficit ($B) | 51 | 272.2 | 258 | 14.1 |
Policy Recommendations for Balanced Trade
To maximize UK trade benefits, policymakers should reduce non-tariff barriers, support export-oriented small and medium enterprises, and invest in workforce retraining. For developing countries, the UK can expand technical assistance to meet import standards, as seen in recent trade initiatives. Addressing protectionist policies, like agricultural subsidies, through multilateral negotiations will ensure equitable market access, fostering global economic growth.
Conclusion
Since 2020, UK exports and imports have navigated Brexit and global disruptions, driving economic recovery while highlighting challenges like trade deficits and non-tariff barriers. By lowering trade barriers, the UK supports incomes and employment domestically and in developing countries. As of 2025, strategic trade policies can further integrate markets, reduce poverty, and promote sustainable global growth.
Sources
Name: Office for National Statistics – UK Trade
URL: https://www.ons.gov.uk/economy/nationalaccounts/balanceofpayments/bulletins/uktrade/february2025
Description: Provides monthly and quarterly data on UK exports and imports of goods and services, including trade balances and partner countries.
