Brexit effect on Andalusian olive oil

Andalusian merchandise exports to the UK have restored positive growth rates in 2021

Analysis «Brexit Monitoring Report in Andalusian Economy» ./ Photo: 123rf

That Great Britain, One of the main export markets of Andalusia, is still being evaluated by Andalusian economic managers because of the effects of Brexit on its foreign trade. Junta de Andalucia Quarterly through the General Secretariat of the Economy, analyzes in «Brexit Monitoring Report in Andalusian Economy«, Andalusia’s economic relationship with the UK, and its current state.

That Andalusian merchandise exports to the UK They have recovered a positive growth rate in 2021 (16.7% year-on-year between January and October), albeit at a lower intensity than Andalusia’s total overseas sales (21.6%). As such, export levels recorded in the same period before the 2019 pandemic have recovered, although they are below those recorded in the same month in the year of the Brexit referendum (2016).

In 2020, highlighting the increase in exports of agricultural food products (7.7% year-on-year), especially blueberries, watermelon, garlic, eggplant, olive oil and tomatoes. Against this, sales of energy products to the UK fell significantly (-36.9%), in the context of falling oil prices on international markets (-35.9% year-on-year average in 2020); semi-manufacturing (-19.8%), mainly cement, concrete or artificial stone; and the automotive sector (-44.4%), particularly gearboxes and parts thereof.

Between January and October 2021, different export behavior is observed by the product. The most relevant ones, representing nearly sixty percent (57.3%) of total exports, continued to be food, beverage and tobacco (889.9 million euros), albeit with a -3% year-on-year decline, highlighting, from one side, olive oil reduction (-44.8%) and avocados (-48.2%), and conversely, increased strawberries (11.5%), grapes (15.2%) and peppers (17.8%). In second place is semi-manufacturing (333.5 million euros), with an increase of 28.2%, mainly cement, concrete or artificial stone (75.4%). And in third place, sales of tanks and other armored vehicles stood out, amounting to 272.2 million euros in the period, 14.6% of total exports.

Regarding exporting companies, between 2016 and 2019 the number Andalusian companies to UK increase by 3.2%, seven times smaller than the growth in the number of exporting companies in Andalusia (23.1%). In 2020 the number of Andalusian companies exporting to the UK grew 3.9%, when total number of Andalusian companies exporting to the world decreased (-13%).

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