UK deficit would be 3% worse off without Scotch

The UK trade deficit would be 3% higher were it not for the success of Scotch whisky exports, according to analysis of the industry’s export performance in 2017 by the Scotch Whisky Association (SWA).

Scotch exports hit a record high of £4.37 billion in 2017

In 2017 UK exports of spirits increased by £449m to £5.6bn, with Scotch whisky accounting for 78% of all UK spirits exports. Overall, exports of Scotch hit a record high in 2017, growing in both volume and value (by 1.6% and 8.9% respectively) to a total of £4.37bn – the equivalent of 1.23bn bottles exported globally. Last year, of every £100 of goods exported from the UK, £1.30 was Scotch Whisky.

Within that, exports of Single Malt Scotch Whisky increased by 14% year-on-year to £1.17bn – the equivalent of more than 122m bottles – however blended Scotch continues to dominate globally, accounting for more than two in every three bottles of Scotch Whisky exported in both value and volume.

However one of the biggest findings was that without the trade in Scotch whisky, the UK’s trade deficit, which reduced from £166bn in 2016 to £153bn in 2017, would have been 2.9% higher.

“The UK trade deficit, currently £153bn, would have been nearly 3% worse without Scotch Whisky exports,” said chief executive of the SWA Karen Betts. “Likewise, Scotch plays a key role in the Scottish and UK economy, supporting thousands of jobs, including in rural parts of Scotland.

“Single Malt continues to grow significantly, boosting again the value of our exports. There are signs too that the market for Blended Scotch Whisky is improving. This is a welcome indicator of future growth. Blended Scotch is the solid foundation on which our global export success has been built.”

The EU maintained its position as the largest region for Scotch Whisky exports, accounting for 32% of the total value in 2017. North America was second, accounting for 25%, and Asia third with 20%.

“As Brexit approaches, it’s important that the government supports Scotch Whisky’s export success and ensures that access to EU and global markets is as good once the UK leaves the EU as it is today,” added Betts. “This includes ensuring that Scotch Whisky is properly protected through the Geographical Indication system.”