Higher insolvencies anticipated in Europe following Brexit vote

· A 52% majority of Britons voted in favour of leaving the EU; Prime Minister Cameron has announced his resignation.

· The Brexit decision will have moderate effects on the EU in the short-term through uncertainty in investment and trade, as well as in the long-term primarily through trade.

· Insolvencies expected to rise in the short-term, especially in Ireland, the Netherlands and Belgium, due to close trade and investment ties. The remaining European countries would see little impact.

· Corporates operating in the transport equipment, food, textiles, electrical equipment and chemicals sectors are most exposed due to close trade linkages.

 

For more information: atradius_economic_research_brexit_update-leave_ern061603en

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