15/02/2022
Oberbank
vid19. More than half of the respon
EU, the first consequences of the Brexit
by the global Covid-19-pandemic.
respondents stated that the effects of
sociated with increasedcosts after
Covid-19-pandemic
Foreign Trade Centre London forecasts
(GDP) slumped by 9.9 % in 2020, accor
United Kingdom
0.10 %. The budget deficit for
expensive economic aid. The WKO’s
me, Brexit has been overshadowed
more negative than expected. In con
and the corona pandemic. For the EU,
infrastructure as promising
ropean Union on 31 January 2020, eco
tervention of the government with
in recent years due to the Brexit and
and there are increasing deivery bot
the entrepreneur-friendly business
transport of goods to and from the
the uncertain future prospects. With
ment rate was kept at 4.5 % in 2020
A recent survey by the British Em
Economic situation
The UK’s gross domestic product
2021.
nal challenge in trade. The majority of
trast, almost half see new opportuni
Kingdom.
nomic growth forecasts amounted to
tion. In addition to capital, the global
•Brexit and Covid-19 as obstacles
„subdued growth expectations“ for
87 % of the companies surveyed alrea
>Historic economic slump
the final formal departure from the Eu
terest rate was lowered from 0.25 % to
2021 and 2022. A 1,500page trade
ding to the Office for National Statis
payments and short-time work sche
Economic and Banking Report
metropolis of London continues to at
the EU entered into force on 01 May
largest market in terms of popula
2020/21 is over 19.6 % of GDP due to
trade between Austria and the United
•Biggest economic slump
and cooperation agreement with
decline in car production since Brexit
The United Kingdom is Europe’s third
loyees back to the EU. The automoti
to foreign trade
a plus of 1 %. However, in the meanti
since 1709
Since the formal departure from the
the second largest net contributor.
lenges for Austrian companies with the
overshadows Brexit
guarantees and subsidies, the key in
member state also means the loss of
United Kingdom due to Brexit and Co
mes. In addition to billions in loan
European banks brought their emp
the agreement. 83 % see administra
began. According to the Bank of Eng
spread of the coronavirus on the island
bassy in Vienna highlights the chal
due to generous salary continuation
However, the economic growth of the
Summary:
island state has already been quite ow
ve industry has been struggling with a
After Brexit, off to new shores.
UK is repeatedly subject to disruptions
tlenecks. In the financial sector, many
•-9.9 % GDP deficit 2020
and, on the other hand, the delayed in
conditions attract many start-ups and
tics, the biggest fall since records
Brexit after 1 January 2021 were even
sectors
land, this economic slump even marks
dy fully understand the new rules for
tougher measures. The unemploy
and healthcare. On a positive note,
this are, on the one hand, the strong
•Budget deficit: -19.6 % of GDP
•Digital technologies and
the biggest since 1709. The reasons for
dents see trade relations as being as
tract talent from all over the world and
FinTechs.
Global Financial Institutions
tive hurdles as the biggest operatio
have already become visible: The
ties in the areas of digital technology
the exit of the former third largest
Key economic figures2018201920202021*2022*
45
Nominal GDP in USD bn2,8612,8342,7133,1593,413
trade more cumbersome than before.
since the financial crisis in 2008.
Mnera fuels
The pandemic hit United Kingdom with full force. The slump in tourism, the disruption of supply chains and a drop in
5.3
4.1
Eectonca machines
Exports/Imports
compared to January 2020. The situation should improve again in 2021, but new tariffs and regulations will continue to make
with the United Kingdom.
Imports of goods 2020: -24 %
Machines, devces
>Exports from Austria
Top 5 mported goods
6.1
5.4
Machines, devices
Precious stones, metals
The export reductions reflect the fall in demand in the UK. This was the first downturn in Austrian exports in goods to the UK
Real economic growth in %1.31.49.95.15.9
Country’s imports of goods in USD bn651644549682740
the area of motor vehicles, but overall, there were declines in all sectors.
After enormous growth in 2018, imports declined significantly in the last two years. The strongest decrease was recorded in
demand had a major impact on the UK. In addition to the coronavirus, the Brexit also slowed down the UK’s foreign trade. For
Eectronca machines
* Forecast
78
44
ous years were exceeded once again. Only with the USA or France does Austria have a higher surplus in trade in goods than
46
Inflation rate in %2.31.71.01.71.9
Source: WKO, Länderprofi; Apri 2021
example, there were drastic declines in foreign trade with Germany. Germany’s exports fell by about a third in January 2021
Tractors, motor vehices
6.4
Exports of goods 2020: -9.7 %
Exchange rate GBP to EUR1.131.141.121.171.19
>Imports to Austria
2019, in %
Population in millions67.167.567.968.268.5
In trade with the United Kingdom, Austria will again have a significant balance surplus in 2020. The already respectable previ
Unemployment rate in %4.13.84.55.64.9
Top 5 Exported goods
Source: WKO, Wirtschaftsbericht, April 2021
Tractors, motor vehcles
GDP/capita at purchasing power parity in USD 46,42648,28244,08646,87050,165
Country’s export of goods in USD bn 469477400471518
Precious stones, metals
Top 5 Exported goodsTop 5 Imported goods
Economic relations with Austria
Mineral fuels
Economic relations between 20202019Change compared to
United Kingdom:
-15.5 %-9.5%
2,152
Most important export market for goods AT/DE 2020Rank 9 / Rank 5
Rue of Law Index (World Justice Project) 2020Rank 13 out of 126 countries
German imports in EUR million34,72738,396-9.5 %
improve this ranking. The Global
Balance: 32,170
Österreich
countries based on 44 indicators and is
Trade with AustriaTrade with Germany
United Kingdom
Austrian exports of services in EUR million 2,7863,365-17.2 %
mports, exports and balance sheet from the perspective of the United Kingdom; own presentation
Source: Wirtschaftsbericht WKO and Statistisches Bundesamt
Bilanz: 1,907
as trading partners of the
In the Ease-of-Doing-Business ran
te wel here, similar to comparable Eu
Austrian imports of goods in EUR million2,1522,831-24.0 %
4,059
Assessment of the business environment
published annually. The UK scores qui
Ease of Doing Business 2020 Rank 8 out of 190 countries
Corruption Perceptions Index 2020Rank 11 out of 198 countries
the coronavirus.
decisions by large companies, some
present a picture of the rule of aw in
governments are promoting reforms to
Global Competitiveness Index 2019 Rank 9 out of 141 countries
the United Kingdom
Hungary37
The foreign trade of the United Kingdom
Austrian goods exports in EUR million4,0594,496-9.7 %
German exports in EUR million66,89779,166-15.5 %
As this index is also used for business
Germany2
2020, change YOY, in EUR milion
Austrian imports of services in EUR million 2,7623,018-8.5 %
2020 due to the turbulence caused by
9.7 %-24%
Austria and Germanyprevious year in %
Czech Republic29
Source: TC, Exports 2020 from the perspective of
Slovakia44
king the United Kingdom is top-ranked.
Current rankings of Oberbank regions
Austria28
Germany
The Rule of Law Index is designed to
66,89734,727
Competitiveness Index will pause in
ropean nations.
Rating United Kingdom
On the one hand, the progressing vac
significant deterioration in public fi
the still ongoing pandemic.
In addition, possible changes in trade
ship with these relationship banks
years.
FitchAA-negative 27 March 2020
(SWFT/RMA) and can thus pre
> Investment grade
expects government debt to rise to
well over 120 % of GDP in the next few
cearing partners.
cination and opening steps are also ha
sustainabe profitability in their Euro
large drop in deposit volumes were
operating costs for banks.
sector. On the other hand, there are
the European capital market due to the
Banks
that this is almost exclusively in
The negative outlook on the Fitch ra
2HSBC Bank plc, London 838,481*
4Standard Chartered PLC, London720,398*
1Barclays Bank PLC, London1,154,883*
10Credit Suisse International, London233,678*
country’s ratings are supported on the
the banking sector in the early days of
The banking sector in the UK faced a
Tota Assets as of 31.12.2019 in USD million* consolidated
Oberbank has an active relation
possible with all UK banks via our
how to improve efficiency and achieve
pean operations, balancing Europe
virus pandemic on the UK economy. A
sent documentary transactions
the other hand by the capital market.
break of the Covid-19-pandemic. A
5Bank of Scotland pc, Edinburgh495,026*
ving a positive impact on the banking
nances is expected as a result. Fitch
risks.
Many banks that used London as their
sharp decline in demand for loans and a
Double A ratings with a
7Santander UK plc, London371,100*
ty of government debt and the fact
one hand by the pound sterling with its
AgencyRatingOutlookDate
Moody’sAa3stable16 October 2020
Payment transactions are also
variety of difficulties with the out
Largest Banks
ting reflects the impact of the corona
for customers.
with other global financial centres.
3Lloyds Bank Plc, London765,865*
sterling also minimise the UK’s debt
relations with the EU could limit the
some of the main problems faced by
The extremely long average maturi
Brexit has drastically increased the
8Natwest Markets Plc, London350,594*
Rank BankTotal Assets
9HSBC UK Bank Plc, Birmingham338,693*
the EU. The challenge for banks now is
base have now opened hubs within
major implications for the financial sec
stable or negative outlook
status as a reserve currency and on
for the country.
Banks shaded in grey:
Oberbank expertise
economic recovery after the crisis. The
tor due to Brexit. The fragmentation of
>Improved outlook in the banking sector
6 National Westminster Bank Plc, London419,567*
S&PAAstable17 December 2019
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