Tenth of surveyed firms anxious over Brexit

The UK's planned exit from the European Union has not yet made any real impact on the business of Czech exporters. They have not even been particularly affected by the eight percent depreciation of the British pound sterling.

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2.8.2016 14:27   |  

Every tenth domestic small and medium sized enterprise (SME) is, however, anxious that the British 'Brexit' from the EU will eventually have harmful consequences for their business. And almost each second such enterprise believes the Czech economy will not survive the Brexit without suffering appreciable damage. The conclusions stem from research conducted by ČSOB bank among 500 SMEs. The bank's survey also found that 28 of the quizzed firms had plans to abandon investments in relation to the British withdrawal from Brussels. “Brexit has lightly cooled the investment appetite among Czech businesspeople. Uncertainty has most grown in terms of decisions over investments ahead,” said ČSOB chief economist Martin Kupka. From comparing the latest research with a survey completed before the UK referendum vote on whether to stay in the EU, it appears that the number of businesses planning to raise investment this year has fallen by around one-quarter. Some of the business respondents determined that there remained a big chance that the UK would not in the end leave the EU. “I see the probability of Britain staying in the bloc at about 30 percent. While in the event of an exit conditions could be arranged so that practically nothing changes,” remarked Radek Jakubský, executive director of health equipment company Proma Reha. Presently, around one-tenth of the firm's output goes to the UK. Its trade with British buyers is carried out in euros, meaning the Brexit events have not to date had any repercussions.

Author: Jaroslav Bukovský Autor: Jaroslav Bukovský redaktor deníku E15

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