The UK lost market share in the US, Germany and China, thanks to the negative impact of the COVID-19 pandemic and Brexit chaos on trade, Reuters reports, citing a report by Aston University’s Lloyd’s Banking Group Centre for Business Prosperity.
Key findings
“In some key export destinations – Germany, the UK and China – the UK seems to have suffered a sharper decline, experienced a slower recovery, and seen its global competitiveness dwindle.”
“The UK’s decline in exports to the U.S. appeared the sharpest in both absolute and relative terms and the most prolonged among the major European countries (except for France).”
“The combination of COVID, Brexit and the UK’s long-term productivity challenges will put British businesses in an adverse position for the foreseeable future.”
Market reaction
The findings of the above report is likely weighing on the pound alongside the rebound in the US dollar across the board, as the market mood worsens.
GBP/USD drops 0.17% to test the daily lows of 1.3811, having hit a daily high at 1.3866 earlier on the session.
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