Over half of UK businesses prioritising international trade to drive growth, finds Santander research

Over half (52%) of UK businesses are prioritising international trade in their plans for growth according to research by high street bank, Santander.

The bank’s Santander Trade Barometer has recorded a 5% rise in businesses looking to reach new overseas customers as a growth driver compared to in Spring 2024, and is more than double the number recorded just three years ago in September 2021.

Data on the North West shows that just under half (45%) of businesses in the region feel that international trade has become more important for their business given the condition of the UK economy, slightly less than the UK as a whole. Roughly a third (32%) of exporters in the region, however, believe more than more than half of their revenue over the next year will come from international trade.

A further 39% of businesses not currently trading internationally said they were considering expanding abroad, with companies increasingly looking to overseas markets for growth and resilience amidst easing domestic and global challenges.

High potential markets existing UK exporters are targeting for future growth include Australia (46%), Japan (28%), and Nigeria (10%). Established trade partners like the US and Canada also continue to hold string appeal.

49% of businesses still identify the EU as a key region in which to base their supply chains. This diversification in trading partnerships illustrates a strategic approach by UK businesses to mitigate risks and expand into high-growth areas globally.

Jane Galvin, Head of Corporate Clients, Santander UK, said:

“With income and productivity growth in the UK remaining sluggish since the financial crisis, unlocking international trade opportunities for SMEs can be a catalyst for domestic economic growth. The latest Barometer underscores the dynamism and adaptability of businesses venturing abroad, underscoring how international trade can provide a vital buffer against domestic slowdowns and access to higher growth economies.

“The government must ensure it is unlocking growth at home by empowering SMEs to explore opportunities provided through global trade.”

Gareth Thomas, Minister for Exports, added:

“Opportunities exist around the world for UK businesses – from our closest neighbours in Europe to some of the fastest growing markets on the other side of the globe, as is demonstrated by Santander UK’s latest Trade Barometer report findings.“

The Autumn 2024 Santander Trade Barometer is available to download in full here.