Slump In Sterling Affecting Irish Businesses
The renewed slump in sterling is affecting key Irish businesses hard as uncertainty of the UK’s new relationship with Europe will persist for a long time, analysts here have warned, according to Examiner.ie
British prime minister Theresa May will set out a 12-point Brexit plan today, in a speech which is said to be taking place at 11.45pm today.
“At current levels, [the currency] is putting a lot of Irish exporters under stress, especially tourism and agri-food,” said Philip O’Sullivan, chief economist at Investec Ireland.
Yesterday the UK sterling fell to 88p, which is it's lowest level against the euro since November last year.
Any hard Brexit outcome will have a negative impact on the Irish economy, both north and south. Economists have warned that Irish tourism, as well as agri-food industries, will be affected at these exchange rate levels. This is due to the fact that British tourism will be hit and also selling goods and services into Britain for Irish firms becomes less profitable as sterling slumps.
O'Sullivan warned of the risk that sterling would fall further after May’s speech.
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