We all know that the Eurozone has hardly been in the best shape recently. Given that Eurozone countries are some of the biggest trading partners of businesses in the UK, this has inevitably impacted on businesses throughout many sectors. It’s not just large businesses who may have been affected. Given that the government is promoting exporting for small companies as a way for them to boost growth opportunities, there are reverberations right down through the whole business sector.
But are UK firms of all sizes looking to limit their exposure to the financial risks of the Eurozone? While prospects from Europe may be brighter than times where a break up of the Eurozone seemed inevitable, there’s still a cloud hanging over the head of many countries. The crisis is continuing and as such, UK firms could be looking elsewhere to more stable, growing markets in order to get the most benefit from their exporting activities.
There are new concerns regarding the two-speed economy within the Eurozone bloc and these are further intensifying the strength of arguments that back economies further afield as more reliable trading partners. This takes the form of a North-South divide within Europe, with the obvious (relative) powerhouses of France, Germany and the Netherlands set in opposition to the hard-hit Mediterranean countries such as Spain, Greece and Italy.
This disunited economy not only has ramifications for the value of the Euro, but will in turn impact on the ability of UK businesses to recover from the ongoingly stagnant performance of the UK economy. So where does your business export to? If you’re looking for growth, many are looking beyond the obvious Eurozone countries to frontiers farther afield, such as China and Russia. More moderate exchange rates, better growth prospects and friendly business regulations are making these markets all the more appealling for UK businesses, of any size.