Signal Trade rose from 43% of UK GDP in 1970 to 70% in 2022

Summary

According to the report, trade rose from 43% of UK GDP in 1970 to 70% in 2022. The figure shows how central trade has become to the UK economy. Globalisation has bound economies together through complex trading relationships, allowing the UK to obtain goods and services at lower prices. The report points out, however, that geopolitical tensions are fragmenting trade relations. In its judgement, the deeper this dependence on trade becomes, the more protectionism, sanctions and supply chain shocks could affect the UK economy and living standards. The report suggests that sourcing within the UK and moving to a circular economy could reduce reliance on international markets while cutting costs and creating jobs.