Since the referendum in June 2016, the impact on Ireland of uncertainty related to the UK’s exit appears to have been small. Instead, the main impact thus far has been through the depreciation of sterling against the euro, which has been about 12 per cent. Despite the depreciation, Irish exports to the UK have generally held up well – until recently at least.
However, the weaker sterling exchange rate has put downward pressure on import prices and as a result overall consumer price inflation over the past three years. More recently, we have seen some deterioration in business and consumer sentiment as the exit date has come closer, and the possibility of a no-deal scenario has come into greater focus.