One of the fastest post Covid-19 recoveries, but Brexit risks still looming

AA2

MEDIUM RISK for enterprise

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

  • 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 USD2707.74 bn (World ranking 5, World Bank 2020)
Population 67.215mn (World ranking 22, World Bank 2020)
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, 2020)

Exports Rank Imports
United States 14.4%
1
11.9% China
Germany 10.3%
2
11.6% Germany
Ireland 6.8%
3
9.2% United States
Netherlands 6.2%
4
7.2% Netherlands
France 5.9%
5
4.6% France

Trade structure by product

(% of total, 2020)

Exports Rank Imports
Road vehicles 8.7%
1
14.2% Gold, non-monetary (excluding gold ores and concentrates)
Power generating machinery and equipment 7.2%
2
9.0% Road vehicles
Medicinal and pharmaceutical products 6.5%
3
4.5% Electrical machinery, apparatus and appliances, n.e.s.
Petroleum, petroleum products and related materials 6.1%
4
4.3% Miscellaneous manufactured articles, n.e.s.
Miscellaneous manufactured articles, n.e.s. 6.0%
5
4.2% Medicinal and pharmaceutical products
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

  • 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.

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