Brexit’s impact on EU exports not as bad as expected, credit insurer says
Share article:
Share article:

Brexit’s impact on EU exports not as bad as expected, credit insurer says

Credit: Belga

The consequences of Brexit on Europe’s exports will not be as serious as initially expected, according to French credit insurer Euler Hermes.

European exports are expected to fall by €10 billion rather than an initially estimated €18 billion, according to the company.

Such a drop would be equivalent to less than 0.5% of GDP. Meanwhile British exports are expected to fall by €27 billion, or 1.1% of GDP, as a result of lower demand, more paperwork and a fall in the pound sterling.

Customs checks on goods imported into the UK can be avoided in a six-month transition period, which will reduce the impact on the European side.

The situation is also cushioned by the coronavirus pandemic, as confinement leads to a slowdown in international trade and an increased use of local subcontractors.

“The coronavirus crisis gives the British government unique margin for maneuvering to deal with the negative consequences of Brexit,” Euler Hermes noted.

“Brexit or not, EU agreement or not, the UK would in any case have experienced a more pronounced recession in the first quarter of 2021 due to the pandemic and the new lockdown,” the credit insurer added.

With a €700 million loss in exports, however, Belgium will be among the EU countries who suffer the most under Brexit, after Germany (€2 billion), the Netherlands (€1.2 billion) and France (€900 million).

That said, the UK and the EU did manage to avoid having to trade under World Trade Organisation (WTO) rules, which would have seen the introduction of high tariffs and extensive customs checks, as they reached a Brexit deal just eight days before the UK left the EU’s single market and customs union.

The Brussels Times

More Brexit News

Latest news

European Council: Decisions on Covid-19 and energy and debate on other issues
At the two-days summit which ended on Friday, the European Council adopted conclusions on COVID-19, digital, energy prices, migration, trade and ...
Flanders ‘water bomb’ could cause €2 billion in damages and affect thousands
The next "water bomb" or heavy rainfall over Flanders could cause damages estimated at around €2 billion, and could affect up to 100,000 people in ...
Pfizer Covid-19 vaccine 90% effective in 5 to 11-year-olds
The Pfizer-BioNTech vaccine is 90.7% effective in preventing symptomatic forms of the coronavirus in children aged five to 11, Pfizer announced on ...
Belgian airport named best for cargo in Europe
Brussels Airport has been named the best airport in Europe in a 2021 roundup of the best cargo airports across the world. The Asian Freight, ...
NASA plans first return mission to Moon in February 2022
The United States space agency, NASA, has announced that it will be aiming to launch its first, uncrewed mission to the moon, Artemis 1, in February ...
New, reportedly more contagious Delta mutation being monitored
A new mutation of the Delta variant of the coronavirus, which is reported to be more contagious, is being monitored by health authorities in the ...
Angèle releases new single: ‘Bruxelles je t’aime’
Belgian singer Angèle has unveiled her latest song ahead of the release of her new album, due later this year. 'Bruxelles je t'aime' (Brussels I ...
23 million chickens and 1.7 million pigs: Climate experts call for livestock cut
Flander's livestock needs to be drastically cut to save the climate and reach the emission reduction targets, according to the latest advice from the ...
Vaccination uptake surges in Wallonia following CST announcement
The number of people getting vaccinated against the coronavirus increased fourfold in Wallonia after it was announced that the Covid Safe Ticket ...
Guilty by association
BRUSSELS BEHIND THE SCENES Weekly analysis and untold stories With SAM MORGAN Other Brussels behind the scenes stories: Brussels' bid to make ...
Health minister supports use of Covid Safe Ticket in workplace
As the use of the Covid Safe Ticket (CST) has been expanded in Brussels and is set to in Wallonia, federal health minister Frank Vandenbroucke has ...
Maggots show Conings may have lived longer following disappearance
Former army soldier Jürgen Conings, whose disappearance in mid-May resulted in a month-long manhunt, may have been alive for longer than has been ...