Financial and business services in the U.K., based in the heart of the capital, are the country’s biggest exportable service and are now likely to be the key sector that will help plug the current account deficit and bring it back to balance.
The sector currently makes up some 55 percent of U.K. service exports and is set to grow its share as its tarnished reputation post financial crisis is wearing off, a report from EY ITEM Club suggests.
Financial and business services along with other sectors such as travel and communications and improved investment income should move the U.K’s current account back towards balance by 2018, the forecasting group found.
Since 2007, the U.K. has lost its share in the global trade of services largely down to weakened demand from the U.S., the U.K.’s largest trading partner.
The financial services sector endured “substantial deterioration” in the global financial crisis years, with export growth slowing from an average of 12.8 percent a year from 1998-2007 to just 0.9 percent between 2008 and 2013.
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