New figures: Danish companies face three major challenges in the British market
The British economy shrank by 0.2 per cent in the second quarter. That is the lowest growth in the UK since the financial crisis.
Brexit appears to be having an effect on the British economy. Not since the financial crisis has the British economy been in such bad shape, show new figures from the UK Office for National Statistics.
“Brits are now feeling the unfortunate consequences of the extremely messy Brexit process. The economy shrank in the second quarter, and forecasts for the coming months are equally discouraging,” says Allan Sørensen, Senior Analyst at the Confederation of Danish Industry.
“British manufacturers have not been in a worse mood since the financial crisis. The overall confidence in the economy has plunged sharply, signalling very weak activity in the British economy in coming months,” says Allan Sørensen.
Three hard blows to Danish exports to the UK
“Danish export companies will face three major challenges in the British market. First of all, we will experience weak demand in the wake of Brexit - particularly if we do end up with a hard Brexit. Secondly, the UK’s exit from the single market will make it more difficult and more expensive to sell to British customers. And thirdly, we will also be affected by impaired competitiveness as a result of the weakened pound,” explains Allan Sørensen.
“The pound has plummeted in recent weeks and is now trading at the lowest level in nearly two years. This makes Danish goods and services more expensive and weakens our competitiveness in the British market,” says Allan Sørensen.
Exports to the UK have fallen by eight per cent over the past year, shows new data from Statistics Denmark.
“The UK is an incredibly important export market for Danish companies, but exports are facing setbacks in the British market. With Boris Johnson as prime minister, the risk of a hard Brexit is unfortunately higher, and this, along with the plummeting of the pound, could further weaken exports to the UK,” says Allan Sørensen.
The UK is Denmark’s fourth largest export market. Last year the UK bought Danish goods and services worth DKK 86 billion.
