Connect with us

Finance

U.S. became Britain’s biggest finance customer in run up to Brexit

U.S. became Britain's biggest finance customer in run up to Brexit 1

By Huw Jones

LONDON (Reuters) – The United States became Britain’s biggest export market for financial services in the run up to Brexit, overtaking the European Union where sales shrank in 2020, TheCityUK lobby group said on Wednesday.

Britain’s financial sector was largely cut off from the EU – previously its single biggest customer – when Britain fully left the bloc’s orbit last December.

For 2020, total financial services exports remained little changed at 82.4 billion pounds ($109.07 billion). Exports to the EU fell 6.6% to 24.7 billion pounds, but rose 4.1% to 57.7 billion pounds to non-EU countries.

Exports to the United States rose 5.3%, said TheCityUK, which promotes Britain’s financial sector overseas.

Britain’s financial services trade surplus of $80.6 billion remains the largest in the world, nearly the same as the next two leading countries, the United States and Singapore, combined at $91.7 billion.

The EU, meanwhile, is building up its autonomy in finance, making it unlikely that Britain will regain unfettered access to the continent’s investors and financial markets.

“The UK’s status as a world leading financial centre is at risk unless industry, government and regulators work together to boost long term competitiveness, deepen key trade links, and focus on new areas of future global growth,” said Anjalika Bardalai, TheCityUK’s chief economist and head of research.

Britain is now revising its financial rules to maintain London’s attractiveness as a global financial centre to keep up with leader New York, and fend off competition from EU cities like Amsterdam as well as Asian centres.

($1 = 0.7555 pounds)

(Reporting by Huw Jones. Editing by Jane Merriman)

Editorial & Advertiser disclosure
Our website provides you with information, news, press releases, Opinion and advertorials on various financial products and services. This is not to be considered as financial advice and should be considered only for information purposes. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third party websites, affiliate sales networks, and may link to our advertising partners websites. Though we are tied up with various advertising and affiliate networks, this does not affect our analysis or opinion. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you, or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish sponsored articles or links, you may consider all articles or links hosted on our site as a partner endorsed link.
Global Banking and Finance Review Awards Nominations 2022
2022 Awards now open. Click Here to Nominate

Recommended

Newsletters with Secrets & Analysis. Subscribe Now