According to the international rating Agency Fitch Ratings, after the UK took the decision to withdraw from the European Union, Ireland’s economy became vulnerable.
We will remind, last week the residents of the UK took part in the referendum, designed to determine the country’s membership in the EU (Brexit). According to the latest data, for the withdrawal of Britain from the Union voted 51.9% of the citizens of the country.
Fitch Ratings reported that the instant collapse of the Irish economy after Brexit is not followed, however, the sovereign credit rating of the country in the medium term to start to fall. This will affect, primarily, the likely deterioration of the British economy associated with the weakening of the national currency and the possible emergence of trade problems.
According to the Central statistical office of Ireland, in the period from January to April this year, the share of the UK accounted for 12.6% of exports of Irish goods and 20% of imports. In total, exports of goods and services Ireland in United Kingdom represented approximately 17% of the country’s GDP.
Negative effects after Brexit, according to Fitch Ratings, will also affect the banking sector in Ireland. Likely slowed the process of improving the quality of assets and reduced capital ratios of banks. It is also possible fall of investor confidence in the Irish creditors.
