News

The economies that Brexit will hit the most

Ireland and Luxembourg will be hit by falling levels of foreign direct investment (FDI) following the Brexit, fund manager Amundi has told clients.

The Paris-based manager also says that Ireland, Malta, and the Netherlands will be among EU countries most likely to see exports suffer as a result of the UK referendum decision.

Amundi has published a list of the top ten questions its analysts have taken from clients in the wake of the UK vote and the questions inevitably include the outlook for EU economies.

The firm’s analysts said Cyprus and Belgium will also be among those “hurt the most” by falling exports.

The impact of Brexit on the European economy can be seen through three main channels: exports, FDIs, and the financial sector, says a note put out by Pascal Blanqué, chief investment officer, and Vincent Mortier, deputy CIO.

But they described the Brexit as a political crisis, not a financial one.

“We are not in a revival of 2007/2008.” 

Regarding exports, Ireland, Malta, Cyprus, Belgium and Netherlands are the countries which will be hurt the most. Regarding FDIs, Malta, Ireland, Luxemburg, Cyprus, Switzerland, Belgium and Netherlands will feel the most effects.

Financial sectors hurt the most by Brexit will be Luxembourg, Switzerland and Malta, says Amundi.

©2016 funds europe