Competition fromthe Uk
Competition fromthe Ukwill also increase in third markets.
A glance at the structure of British global exports shows the metal
production and processing industry (total proportion of British ex-
ports in the manufacturing sector: 14. 1%) to be the most important
export sector, followed by vehicle construction (12. 7%) . There is
also significant competition in the mechanical engineering, phar-
maceuticals, chemicals, IT equipment, electronic and optical prod-
ucts sectors.
Aerospace production also makes an important con-
tribution to exports, consisting mainly of intermediate products
with inelastic exchange rates made in the British assembly plants
of the European aircraft manufacturer Airbus.
The weak pound is also making British suppliers more competi-
tive in the German market. British imports are exerting pressure
on both foreign and German suppliers. This poses a risk for the
vehicle construction and chemical industries since, with the excep-
tion of aerospace, these sectors were responsible for almost 40%
of British imports in 2015.
EU Forecast
euf:b.a18b:191/nws-01