United Kingdom Political Risk & Business Climate Report

A full UK-EU trade deal is unlikely in 2020

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MEDIUM RISK for enterprise

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

The country risk assessments are your North Star metrics to make the right decision for your business and understand the risks in international trade. We have always the best solution for your needs

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GDP USD2825.21 bn (World ranking 5, World Bank 2018)
Population 66.49mn (World ranking 22, World Bank 2018)
Form of state Constitutional Monarchy
Head of government Boris Johnson (Conservative Party)
Next elections 2024, legislative 
  • Supportive economic and fiscal policies
  • High trade balance surplus on services
  • Healthy banking sector
  • Diversified export structure
  • Very friendly business environment
  • High trade balance deficit on goods
  • High current account balance deficit
  • Uncertainty surrounding Brexit
  • Decreasing long term per capita income
  • Low productivity growth

Trade structure by destination/origin

(% of total)

Exports Rank Imports
United States 14%
1
16% Germany
Germany 10%
2
8% China
France 6%
3
8% United States
Netherlands 6%
4
8% Netherlands
Ireland 5%
5
7% Belgium

Trade structure by product

(% of total)

Exports Rank Imports
Cars 12%
1
9% Non-Monetary Gold
Pharmaceutical 7%
2
9% Cars
Aeronautics 7%
3
5% Pharmaceutical
Engines 4%
4
3% Aeronautics
Non-Monetary Gold 4%
5
3% Telecommunications Equipment
An increase in the average DSO to 53 days is perceived as a result of high value unpaid invoices.

  • Low

  • Medium

  • Sensitive

  • High

  • Payments

  • Court proceedings

  • Insolvency proceedings

UK courts are efficient in delivering timely decisions, but recent changes in charges mean it can be expensive for large value debts. Timely escalation from credit control to skilled external debt collection agencies remains effective.

The insolvency framework is oriented towards the protection of creditors’ rights, although an emphasis has been made on the need to rescue viable businesses. Such proceedings would not guarantee that the debt would be recovered as in practice there are no limitations as to how much of the debt may be written off during renegotiations. Furthermore, liquidation proceedings would rarely yield any proceeds to unsecured creditors.

Contact Euler Hermes

Economic Research Team

research@eulerhermes.com

Contact Ana Boata

Senior Economist for Europe

ana.boata@eulerhermes.com 

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