North exports are up by £1bn

Mar 7 2008 by Peter McCusker, The Journal

THE economic rebirth of the North East continued apace last year with the region exporting £1bn more goods than it did in 2006 – at the same time as total exports from the UK fell by 10%.

Experts say it is positive proof of the entrepreneurial spirit that it is now driving the region forward as it moves from a labour-intensive, primary manufacturing economy to a diverse multi-skilled high-end manufacturing and service one.

The total value of exports from the region rose by 13% from £8.5bn in 2006 to £9.5bn in 2007.

At the same time total exports from the UK fell 10% from £244bn to £219bn, with seven English regions recording a fall, including near neighbours Yorkshire and Humberside.

David Coppock international trade director for UK Trade and Investment (UKTI) in the North East said: “Clearly 2007 was a very tough year for exporters around the UK and against that background the increase in export value recorded in the North East reflects huge credit on those companies in the region doing international business.”

Ian Williams, One NorthEast director for business and industry, said: “This report is further evidence of the growing strength of the North East economy, which has outstripped UK average annual growth for the past three years.

“For the past five years our business stock has grown at a rate faster than the UK average, while the North East has seen employment grow at the third highest rate in the UK and unemployment fall faster than anywhere else in the country over the past 12 months.

“The sectors that provide the most exports for the region are in automotive, biotech and pharmaceutical with all performing exceptionally well. The recent fantastic announcement that Nissan is to create a further 800 jobs is further proof that the North East is performing well. Today’s HMRC figures reflect the buoyancy of the regional economy.”

The region recorded some remarkable growth in the emerging economies with total exports to Russia up 133%, Brazil 62%, China 30%, as well as a rise of exports to Japan of 289%.

The two major markets form North East firms remain the USA and the Netherlands where exports both exceeded £1.3bn in 2007.

The Journal recently revealed that only 1,000 of the region’s 46,000 businesses were active exporters, with 60% of the region’s exports coming from automotive, chemicals and pharmaceuticals sectors.

While the figures do not yet show if there has been any marked change in this pattern experts are convinced the exporting message is now hitting home.

Value of North East exports 2007

Rank Value (000s)

1 USA 1,346,139

2 Netherlands 1,321,239

3 France 721,966

4 Germany 707,028

5 Italy 577,329

6 Russia 516,736

7 Spain 505,067

8 Belgium 412,882

9 Irish Republic 370,210

10 Japan 362,947