#ExportsBrexit - Firms which employ large numbers of people by Irish owned companies are being hit by the slump in sterling, the latest trade figures suggest.
Business groups here writes The Irish Examiner condemned UK prime minister Theresa May’s speech on the UK’s plans for Brexit as being universally bad for Ireland.
Even as she confirmed that her government intended to pursue a hard line in negotiations with Brussels in the looming talks, sterling yesterday rose against the dollar and the euro as investors were placated by her comments that the UK parliament would have some sort of role in reviewing the Brexit proposals.
Sterling rose to 86.5p against the euro but remains 13% below its level of June 23 when the UK voted to quit the EU in its referendum.
Sterling’s plunge in value has piled the pressure on Irish SMEs exporting into Britain because they are in no position to cut margins to compensate for the huge currency swing.
The CSO trade figures showed that medical and pharmaceutical products — which are more likely to be made by multinationals — helped boost seasonally- adjusted exports to almost €10.2bn in November, up from €9.5bn a year earlier.
However, exporters that rely on the UK saw a slowdown as machinery and transport, manufactured goods, and foods “ all trended weaker over the course of 2016”, because of their exposure to the fall in sterling against the euro, said Davy Stockbrokers economist David McNamara.
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