Financial services drive rise in Scotland’s international exports

Scotland’s international exports (excluding oil and gas) increased by £460 million to £29.8 billion in 2016, with the 1.6 per cent rise driven by financial and insurance services, according to latest official figures.

The performance north of the border compared with a.

However, the data released by Scotland’s Chief Statistician today also showed a decline in goods exported to the rest of the UK as trade within the British Isels suffered a decrease of 8.8 per cent.

The Export Statistics Scotland 2016 document, which estimates of the cash value of Scotland’s exports of goods and services by industry and destination in 2016, found that the increase in international exports was driven by increased exports of financial and insurance services (up £290 million) and food and beverages (up £275 million).

The largest industry for international exports continues to be the manufacture of food and beverages, worth £5.5 billion in 2016, 18 per cent of all international exports.

International exports to countries within the European Union (EU) were estimated at £12.7 billion in 2016, which is 43 per cent of total international exports. This is a decrease of £105 million (0.8 per cent) from the previous year.

However international exports to non-EU countries increased in 2016, up £565 million (3.4 per cent) to £17.1 billion in 2016. This accounted for 57 per cent of total international exports.

Scottish exports to the rest of the UK in 2016 (excluding oil and gas) were estimated at £45.8 billion in 2016, a decrease of £4.4 billion (8.8 per cent) since 2015. This decrease was driven by a decrease in the export of utilities (electricity), down £1.6 billion (27.4 per cent) in 2016. Other sectors with large decreases include wholesale and retail (down £855 million) and professional services (down £745 million).

Total international and rest of the UK exports in 2016 (excluding oil and gas) were estimated at £75.6 billion, down £3.9 billion (5.0 per cent) from 2015. Exports to the rest of the UK accounted for 61 per cent of this total, EU exports accounted for 17 per cent and non-EU exports accounted for 23 per cent.

The USA continues to be Scotland’s top international export destination country (£4.8 billion). Within the EU, the Netherlands (£2.1 billion) was again, the largest market, followed by France (£2.0 billion) and Germany (£1.9 billion) in 2016.

The Scottish government’s economy secretary, Keith Brown, said the figures covered a year of “considerable uncertainty” with the EU referendum, the downturn in the oil and gas sector and the closure of Longannet.

Mr Brown said all of these factors had impacted on the figures, and warned of the risk of “severe damage” to the economy if the UK government continues with its plan to leave the European single market and the customs union.

But he said it was encouraging that international exports were continuing to increase, with the food and drink sector performing particularly well.

The UK government’s Scottish secretary, David Mundell, said the figures showed that Scotland’s trade with the rest of the UK was still worth nearly four times that with the EU.

He added: “We know that more than half a million Scottish jobs depend on the vital UK internal market. As the UK prepares to leave the EU, it is essential that we ensure the UK internal market continues unimpeded.

“The trade figures also show an increase of over half a billion pounds in exports to markets outside the EU. This demonstrates the opportunities that lie ahead for Scottish businesses, as we strike new, ambitious trade deals around the world.”