Portugal was included for the first time in the sensitivity index and is ranked 16th, reflecting relatively low sensitivity. This was due to the low level of investment and activity in the financial sector, but combined with a significant level of exposure to export activity and immigration restrictions.
Who are the sensitive countries – and why?
The chart below shows 21 countries with the highest sensitivity to brixite. Ireland has been and remains the country with the highest exposure to Berkshire, with a score of 2.9 in terms of the level of sensitivity according to the parameters that make up the index.
The result of Ireland is four times the median score (0.7), reflecting a significant projection if Britain leaves the EU, especially if it does so without a formal agreement that includes a transitional period.
Ireland, which is about 500 km from Britain, has significant trade activity in the goods and services sector, as well as immigration between the two countries, followed by Luxemburg, the second country with a sensitivity to Berkazit High exports, are the ones that explain its place as the second country to the Berkazit.
The nine countries that scored higher than the median (0.7) are Ireland, Luxembourg, Netherlands, Cyprus, Switzerland, Malta, Spain, Belgium and Norway. Of the 21 countries most exposed to Berkshire, only two are not members of the EU – Switzerland and Canada.
What about Britain itself? The change in the UK’s external debt financing and the decline in foreign investment in the country indicate that in 2018, concern over the implications of the Berkshire for Britain led to a decline in appetite for long-term investments in the British economy. This is especially so because Britain’s current account deficit, which stands at 5% of GDP, is the second-largest