Exports to UK account for 3 percent of GDP

17/06/2016 15:00
© Hollandse Hoogte
Last year, the Netherlands earned over 20 billion euros on exports to the United Kingdom, i.e. three percent of GDP. In terms of earnings, the UK is the Netherlands’ second largest export market after Germany, according to Statistics Netherlands (CBS).

Exports to the UK of goods manufactured in the Netherlands (e.g. food and petroleum derivatives) account for approximately 1.4 percent of Dutch GDP. With 1.2 percent, exports of services to the UK (mainly transport and business services) also make a relevant contribution to GDP. Re-exports of goods are the least profitable, accounting for only 0.4 percent. Re-exports mainly include high-tech equipment and chemical products.
The overall value of Dutch exports to the UK exceeded 52 bn euros, with earnings amounting to over 20 bn euros, because exports also require imports.

Contribution exports to UK to Dutch GDP, 2015

United Kingdom more important than Belgium

Despite the lower value, exports of goods and services to the UK are more profitable than exports to Belgium, because exports of services to the UK are much higher than to Belgium. Per euro, exports of services are more profitable than exports of goods. In general, goods exports require more imports of raw materials, semi-manufactured goods and imports for re-exports.

Although the UK plays a pivotal role in Dutch exports, in 2015 too, Germany was by far the most important export destination for the Netherlands, with export earnings totalling 42.2 bn euros. Other important export partners for the Netherlands are the United Kingdom (20.5 bn euros), Belgium (17.9 bn euros), the United States (15.2 bn euros) and France (14.4 bn euros).

Main export destinations of the Netherlands, 2015

Sector trade, transport and storage benefits most

Obviously, the sector trade, transport and storage benefits most from exports to the UK. Together, trade, transport and storage earned nearly 7 bn euros on exports to the UK: one-third of total export earnings. Wholesale trade and transport in particular did good business.
Manufacturing industry and business services also benefit from exports to the UK, both accounting for a profit of approximately four bn euros. Together, these three industries account for more than 70 percent of export earnings.

Contribution various sectors to export services to United Kingdom, 2015

Dutch goods exports to UK account for over 9 percent of total goods exports

Accounting for over 9 percent of total goods exports, Dutch goods exports are strongly oriented towards to the UK in comparison to other European countries. Only in Ireland is the percentage higher (nearly 14 percent). Belgium is closely behind the Netherlands. Export value is different from export earnings: in export value, re-exports are more important. Re-exports make up more than half of the value of exports to the UK.

Share export value United Kingdom in total exports of goods, 2015