Brexit to cost Polish companies up to EUR 353 mln in H2 2021

Britain's exit from the European Union is set to cost Polish companies up to PLN 1.6 billion (EUR 353 million) over the second half of 2021, the insurance company Euler Hermes has estimated.

The company pointed out that Polish companies would have to search for other markets to make up for losses expected in the latter half of the year.

Tomasz Starus, Euler Hermes’ management board member responsible for risk assessment, said that "the effects of Brexit in its current form are above all the sight of traffic jams, lorries stuck in queues at the border and tired drivers - or the losses of hauliers as well as the losses of deliverers of food products, some of which do not endure prolonged transportation."

In his view, "other losses will be of a more lasting nature", he said, pointing out that administrative difficulties and disruption to supply chains are likely to occur, causing changes to deliveries mostly affecting machinery and electrical industries.

He also added that the food sector in the second half of 2021 could see estimated losses of PLN 125 million (EUR 27.6 million).

“With the UK being Poland’s number-two export market, the country will have to look for other markets to compensate for the potential losses”, Mr Starus emphasised.

Euler Hermes has estimated that British businesses would be the most affected by Brexit with UK exporters losing as much as GBP 25 billion (EUR 28.23 billion) over the whole of 2021.