Brexit detrimental to UK itself
When the British chose Brexit, there was much uncertainty about what was going to happen. Speculation about the adverse consequences for other European countries - especially those that export heavily to the UK, including the Netherlands - followed in rapid succession. Now that Brexit negotiations are in full swing, it appears that the consequences are particularly detrimental for the UK itself.
UK growth declines sharply
Apart from a sharp devaluation of the pound, many multinationals are also no longer investing in the UK. Products from outside the UK have become more expensive for Britons. This will knock out demand for certain products. Necessary products not available in the UK will start to be bought at a higher price. Credit insurers expect growth to slow sharply in the UK, at least more sharply than in the rest of Europe. This year, growth in the UK already lags far behind the rest of Europe. In this context, see also the chart prepared by Euler Hermes (Johan Geeroms) below, with several impact scenarios for the UK.
Limit your export risks
Currency risks can be hedged. You can contact us for this. However, these risks do not stop there. With UK product prices rising and growth slowing sharply, the likelihood of bankruptcies is increasing. Companies are therefore wise to 1) insure exports to the UK and 2) only do business with companies insured by credit insurers. We are happy to help you with this.
