As the UK marks its first anniversary of the Brexit withdrawal, Atradius reflects that while the UK has not been alone in experiencing economic fallout due to the pandemic, adding Brexit into the mix has exacerbated its impact. After a sharp recession, UK GDP is showing a gradual, slowing recovery, but the economy remains smaller than at the start of 2020.
Nicola Harris, Senior Risk Underwriter at Atradius, commented: “At a time where we should be analysing the consequences of Brexit, we cannot separate its impact from that of COVID and other influencing factors, and it is near impossible to wholly attribute strains to one root cause. However, it is clear that Brexit is amplifying supply chain issues, and it is likely to do so for some time yet.” Looking ahead, 2022 will continue to bring challenges for UK businesses as a result of Brexit combined with persisting inflationary pressures and rising insolvencies which Atradius economists forecast will increase 33% on pre-pandemic rates.
Click here to see the full 2-minute interview with Nicola Harris.