Shoppers' short-term gains are outweighed by the bigger picture of the damage it is doing to significant sectors of the Irish economy such as agri-food, tourism and the motor industry.
A FURTHER weakening of sterling against the euro is not good for the majority of Irish people who care about their own jobs and our general economic wellbeing. People who are so inclined can go shopping in Northern Ireland and also online to take advantage of the favourable exchange rate, but their short-term gains are outweighed by the bigger picture of the damage it is doing to significant sectors of the Irish economy such as agri-food, tourism and the motor industry.
We’ve seen the beef farmers’ protests in recent weeks and the €100m aid package already agreed will need to be bolstered further as their situation has worsened. Dairy exports will also take a hit as sterling heads for parity with the euro, ultimately affecting jobs in rural Ireland.
Growth in the UK economy unexpectedly fell by 0.2% in Q2 and, if there’s another drop in the current quarter, it is officially into recession. Then there’s the looming threat of a no-deal Brexit as well.
West Cork tourism providers have noted a drop in British tourists visiting the area this year due to the poor exchange rate, which is getting worse. In the motor sector, new car sales for the month of July fell by 9.7% year-on-year, while used imported vehicle registrations increased by 12.2% for the same period.
Job losses are inevitable.