The international insurance company Euler Hermes expects the losses of British exporters in 2021 could grow to 25 billion pounds sterling.
The main factors that will have a negative impact on British export-oriented business this year, the company’s experts attribute changes in the terms of trade after Brexit, more complicated bureaucratic procedures, as well as the depreciation of the British currency.
The measures introduced in the country to curb the pandemic, analysts believe, will weaken economic activity that will be reflected in the fall of the British economy by 5.5% in the first three months of this year. The insurance companies believe that after the end of the transition period in the summer months automobile and pharmaceutical companies will have to increase their costs by about 5%.
Experts expect the biggest losses this year in the spheres of minerals extraction, mechanical engineering, as well as in the production of metal products and the textile industry. The study forecasts UK GDP growth of 2.5% this year and an acceleration of economic recovery to 7% in 2022.
Thus, UK GDP will not be able to fully recover until 2023.