Value of Welsh exports drops

Mar 12 2008 by Sion Barry, Western Mail

THE value of exports from Welsh-based companies has fallen, according to new research from the Office for National Statistics.

Their value for the whole of 2007 fell by £401m (4.3%) compared to 2006. In comparison the value of exports for the UK as a whole fell over the same period, by 7.6%

The fall for Wales was made up of a reduction of £151m in exports to non-EU countries (down 4%) and a reduction of £250m in exports to EU countries (down 4.4%.

Only the north east of England, Northern Ireland, Scotland and Yorkshire and the Humber experienced an increase in the value of exports on the year (up 12.8%, 6.4%, 1.8% and 0.5% respectively.

Growth in Welsh exports between 1999 and 2007 was 41% This compares with an increase of 29% for the total of all UK countries and English regions.

Looking at quarter four of 2007 in isolation, total exports (by value) for Wales decreased on the corresponding quarter in 2006, by £23m (down 1%), to £2,230m London and the East Midlands also experienced a fall in the value of exports. However, overall, the value of exports for the UK as whole increased by 5.1%.

Welsh exports for Q4 2007 were higher in value than in the previous quarter (up £73m or 3.4%), compared to a 6.8% increase for the UK as whole.

By industry sector for Q4 metals accounted for £537m, around 25% of the total values of exports. The energy sector contributed £448m and engineering £212m.

All these sectors have key non-Welsh-owned companies, such as steelmaker Corus.

The figures also show that the Welsh creative and media sector contributed only £3m to the total value of exports for the quarter.

Moreover the value of exports from the sector has fallen significantly in recent years. In Q4 2004 it contributed £14m.

The Conservatives’ Assembly economic development spokesman, David Melding, said of the fall in export values, “This is further confirmation of the fragile nature of the Welsh economy.”