The growing middle class in emerging market economies around the world is expected to drive growth in the U.K. over the next decade as exports to emerging countries surges, according to The Daily Telegraph. On Monday, the Ernst & Young ITEM Club forecast that exports would drive sustained growth in the U.K. as the country “reorientates” to demand from Brazil, Russia, India, China, and other rapidly expanding economies.
The group forecasts that exports to BRIC countries could grow from 5% of all exports by an average of as much as 11.7% annually until 2020, while global exports from the U.K. is likely to be around 8.5%. Exports are expected to contribute 0.5% to gross domestic product growth in each of the coming five years, although the ITEM’s senior adviser, Andrew Goodwin, said that current weakness in the pound represents “a significant, but temporary, boost to competitiveness.” Goodwin also pointed to government incentives and international relations as potentially improving the U.K.’s standing as a leading exporter.