Irish Exporters See Brexit Impact on Sector: Survey by Reuters

DUBLIN – A recent survey indicates that 90% of Irish exporters believe Britain’s decision to leave the European Union will negatively impact their businesses. More than half of these firms plan to explore alternative markets as a response.

Ireland’s economy is perceived as particularly susceptible to the repercussions of Brexit, especially since many exporters are already feeling the effects of the pound’s significant decline against the euro, which has made their euro-priced products more expensive.

The Irish Exporters Association (IEA) conducted the survey in the two weeks following the June 23 referendum, revealing that 92% of its members anticipate adverse effects on the exporting sector due to the UK’s exit from the EU.

The weaker pound is already influencing two-thirds of exporters, while nearly 75% express concerns about short-term currency volatility.

Brexit’s impact on trade prompted Ireland’s central bank to revise its economic growth forecasts for the current year and the next, highlighting potential dire consequences if the UK exits the EU without a favorable agreement.

The survey shows that exporters are particularly worried about the potential reinstatement of border controls between Northern Ireland and the Republic of Ireland, followed closely by concerns over economic growth in Ireland and the possible reintroduction of customs procedures and tariffs.

Some anxieties have diminished compared to a similar survey conducted in March, where 79% of businesses were worried about Brexit’s repercussions on the Irish economy, down from 83%, and concerns regarding job impacts have dropped to 44% from 60%.

“This may indicate that exporters are becoming accustomed to the prospect of an EU without the UK. Ireland has a long history of trading with the UK, and that will continue,” stated IEA Chief Executive Simon McKeever.

He also emphasized the importance of diversifying export markets, urging a greater focus on high-growth regions such as China, India, Africa, South America, and emerging opportunities in places like Iran.