Davy Stockbrokers: Euro fear on Brexit

The UK exiting the EU is unlikely to hurt Ireland’s economic recovery in the near-term, but could have negative long-term consequences for both countries, Davy Stockbrokers has warned.

In a detailed report on the economic impact of a so-called Brexit on Ireland, Davy’s economics team said that while the key threat is UK productivity growth suffering over the longer term, negative effects on both sides of the Irish Sea are already evident.

“Brexit is now clearly threatening the UK’s growth prospects and in the past a 1% reduction in UK GDP has led to a 0.3% fall in Irish GDP,” said Conall Mac Coille and David McNamara in the report.