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Three quarters of exporters eye recovery after Covid hit

Exports ship 
Exports ship

Most exporters whose businesses were hit by Covid-19 are now recovering or are expecting to, according to a survey.

The Institute of Directors found that nearly half of exporters had experienced a fall in overseas sales since the outbreak of Covid-19, with the biggest drop coming from the European Union, mainly due to reduced demand abroad and travel restrictions.

Nonetheless, 76pc of the poll’s 978 respondents said the situation had either improved or was projected to.

Allie Renison, head of EU and trade policy, said: “It’s hardly surprising to see that exports have taken such a hit from the pandemic given so much of our trade is linked to the EU, where the virus struck so swiftly and to such an extent. There is clearly light at the end of the tunnel, however, given most of those affected expect to see a rebound as Europe gets back to business.”

Meanwhile, more than half of importers said they had seen no significant difference since the outbreak began.

Importers were also less likely to consider changing their business models to counter the negative impact than exporters, including through the diversification of supply chains and pursuing more domestic business.

The findings follow the Government changing tack on its quarantine plans after failing to agree bilateral deals to create “air corridors” with other countries, and with trade negotiations with the EU, US, New Zealand and Australia under way.

Travellers can visit these 59 countries
Travellers can visit these 59 countries

Ms Renison added: “Diversification may well be an important lesson for some out of this crisis, but trade is a fix – not a fault.

“Businesses have been resilient in adapting, and governments worldwide must do their utmost to support the road back to recovery.

“That means protecting the trade we have and increasing global opportunities, rather than trying to limit free enterprise either at home or abroad.”