Thursday 29 September 2016

Ireland a net loser in the event of Brexit - Goodbody

Published 06/03/2016 | 02:30

British prime minister David Cameron will hold the Brexit referendum on June 23. Photo: Geert Vanden Wijngaert/AP
British prime minister David Cameron will hold the Brexit referendum on June 23. Photo: Geert Vanden Wijngaert/AP

The sectors in Ireland most affected by a so-called Brexit are agri-food, tourism and transport and financial and insurance services, Goodbody Stockbrokers has warned.

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It said both the agri-food and tourism sectors are dominated by Irish indigenous companies.

"According to Food and Drink Industry Ireland, half of all exports by indigenous Irish companies are agri-food related," the Goodbody reported said.

"In addition, Irish-owned firms in the manufacturing sector see a larger portion of their exports (29pc) go to the UK than non-Irish firms (9pc)."

Goodbody said its base case was that the UK would vote to remain in the EU on June 23, but with polls too close to call, "uncertainty surrounding the vote poses a serious event risk for the UK".

Ireland, it said, was a net loser in the event of a Brexit, Goodbody said.

"Ireland exports €34bn of goods/services to the UK and it is the country's second largest export market.

"The ESRI estimates exports to the UK could fall by up to 20pc in the event of Brexit, with the agri-food sector (where 44pc of exports go to the UK) the most exposed.

"The tourism sector would also be adversely affected by lower sterling and possibly tighter security. Thus, employment-intensive indigenous industries would suffer the most."

Irish Independent

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