41% of UK Companies Report Decline in Export Performance After Brexit

[Image source= AP Yonhap News]

[Asia Economy Reporter Park Byung-hee] About half of British exporters reported a decline in sales following Brexit (the United Kingdom's withdrawal from the European Union (EU)), Bloomberg News reported on the 11th (local time).

According to a survey by the British Chamber of Commerce, 41% of British exporters said their overseas sales decreased in the first quarter of this year, up 3 percentage points from the survey conducted in the fourth quarter of last year. In particular, sales of hotels, retail, and catering businesses were confirmed to have significantly declined.

The UK officially left the EU at the end of January last year and, after an 11-month transition period, completely severed ties with the EU on December 31 of last year. British Prime Minister Boris Johnson declared in his New Year's address this year that "we have seized freedom."

However, exporters expressed in the British Chamber of Commerce survey that exporting has become more difficult after Brexit. They reported that transportation costs have increased while transportation has slowed, and the paperwork required for export procedures has increased. Brexit is thus impacting supply chains. Companies also responded that COVID-19 affected the decline in sales.

Hannah Essex, director of the British Chamber of Commerce, said, "It is worrisome that sales slumps may continue given that export performance remains at historically low levels." She expressed concern, saying, "The problems exporters face are not simple but structural. If these issues remain unresolved, they could become irreversible weaknesses in the long term."

This content was produced with the assistance of AI translation services.