27/04/11

Kent firms set to benefit from Olympics 'bounce'

by business editor Trevor Sturgess

Exports are expected to grow strongly this year, with the 2012 Olympics likely to boost overseas trade, according to a survey of firms in Kent and the south east.

Just days after four Kent firms won Queen's Enterprise awards for international trade, the survey by logistics firm DHL Express found that more than half - 59 per cent - of small and medium enterprises (SMEs) expect export growth this year.

Nearly 60 per cent believe that the 2012 Olympics will create greater global demand for British goods.

But almost seven out of 10 - 69 per cent - believe that keeping the base rate at the historic low of 0.5 per cent is key to economic growth. Experts now believe that an increase, widely expected next month (May), will be postponed until August at the earliest.

Official data from the Office for National Statistics showed that exports grew by 11.5 per cent in 2010.

Most firms expect this year's export growth to come from France, the USA, Germany and India. While China is a major exporter to the UK, the survey revealed that it is also a growing importer of products from south east SMEs, with 17 per cent identifying China as a key source of their export sales.

Phil Couchman, CEO, DHL Express UK and Ireland, said: "The international express market is recovering after a turbulent period caused by the financial crisis; businesses altered their trading patterns over the past few years to cut costs which had a direct effect on shipments. Despite the weak economic conditions, last year saw the amount of international shipments handled by DHL Express grow strongly."