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Brexit and Pandemic continue to hit Irish firms hard

Written by Robert McHugh, on 1st Mar 2021. Posted in Ireland

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InterTradeIreland has today released its latest for latest business monitor for the fourth quarter of 2020. The survey is the largest and most comprehensive business survey on the island and is based on the views of more than 750 business managers across Northern Ireland and Ireland.

The monitor shows that 58% of businesses continue to struggle with reduction in demand for goods and services, low business and consumer confidence and the subsequent impact on their cash flow. The manufacturing and leisure sectors have been particularly impacted by the current challenges, with the pandemic being the primary source of concern for those in industries impacted by lockdowns and social distancing restrictions.  
 
Half of firms report that they are now contracting, winding down or surviving at all costs, compared to just 13% at the same point last year.

When asked to consider the extent to which business operations are being impacted by both Covid-19 and Brexit, businesses are more likely to cite Covid-19 alone as the main source of impact (61%), with just 5% of companies saying Brexit alone has caused an impact on their operations. Almost 1 in 3 firms however say that both developments are playing a role in their current business concerns. 
 
The business monitor also shows the reliance that firms have on imports and exports from Great Britain, the island of Ireland and the rest of the EU. Thirty six percent import and 25% export within the island and the EU, with 31% of firms across the island importing from, and 13% exporting to, Great Britain.  

Looking ahead, 76% of businesses believe Covid-19 will continue to have a negative impact on their operations over the next 12 months. Less than half believe Brexit will have a negative impact, with 43% citing Brexit as having no impact whatsoever. 
 
Commenting on the monitor, InterTradeIreland’s Assistant Director of Strategy and Policy, Kerry Curran said, "Businesses are currently in the unenviable position of facing the dual tests of the pandemic and the end of the Brexit transition period. While no sector is immune from the ongoing challenges, the data reveals that cross border traders and exporters are beginning to see sales losses moving in the right direction."

Source: www.businessworld.ie

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