You can read some predictions of the impact of the Brexit here.
Problem underestimated
Underestimating the issues is lurking, while the first effects are already being felt. Entrepreneurs with a turnover of 10% or more in the United Kingdom (UK) are significantly affected by the change in the exchange rate. Some are using financial hedging techniques to cushion the negative effects. The effectiveness of such an approach is becoming increasingly limited or much more expensive.
Falling sales
In early 2017, the flower industry reported declining sales in the UK. These are decent amounts. Dutch floriculture exports amount to over €5.5 billion a year, and of this, the UK accounts for around €900 million. Several market players have reported facing a drop in sales of up to 15%.
UK is second largest exporting country
After Germany, the UK is the second export destination for Dutch companies. The export value of goods and services is €52 billion. The UK accounts for about 2.3% of Dutch GDP. Import interests are also high: the UK is the third largest country in terms of its share of our import value. The sectors with the strongest (export) relationships are transport & logistics, agri & food, manufacturing and wholesale trade.
Entrepreneurs cautious
The uncertainty surrounding the Brexit is making entrepreneurs cautious. Plans to invest are shelved or, in some cases, cancelled altogether. For the longer term, Dutch exporters are also worried. They fear (new) import duties and customs regulations. Besides extra bureaucracy, this will increase costs (estimated by some at 20%) and could lead to margin pressure in competitive sectors.
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