A LEADING GERMAN economic think tank has found that out of all the European countries, Ireland will be hit the hardest by Brexit.
The Munich-based Ifo Institute said that while Britain will “suffer the most” from Brexit in economic terms, a “dampening” effect will be felt by all European Union member states.
Britain itself stands to suffer the most from the Brexit in economic terms, although other European Union countries – and especially Ireland – will also be negatively impacted.
The institute’s World Economic Survey of 762 experts from 112 countries was conducted over the period of 1 July 2016 to 27 July 2016.
According to the experts, North America and the Middle East will not be impacted by the leave vote, however, Brexit is expected to drag some economies of EU member states for a period of at least three to five years.
The Commonwealth countries (excluding Britain) are expected to face slightly negative effects in both the short and the medium term.
Short and long-term impact
Ireland has been placed in the category of a strong negative impact both in the short-term (this year) and the longer term (three to five years).
The full implications of Britain leaving the EU have yet to be fully ascertained, but the government says it has been planning for it for over two years.
Front and centre for government is Northern Ireland, keeping the border open and ensuring the Good Friday Agreement is priority.
The possible need to reimpose border controls has already been examined, with Revenue investigating the practical implications – like how much reinstating the border checks would cost.
Taoiseach Enda Kenny has been rallying support in Europe, with meetings with French President Francois Hollande and German Chancellor Angela Merkel.
He has also discussed Ireland’s “special case” with the new British Prime Minister Theresa May.
However, given that the UK is one of Ireland’s closest trading partners, the fear remains that Ireland will feel the negative implications the most.
Business group, Ibec stated last week that businesses here are already at risk due to the fall in Sterling, while Irish exporters are also predicting a hit to their business.
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