The Brexit process could have an impact on Greece’s tourism industry, Eurobank said in a recent report. On March 29, UK Prime Minister Theresa May triggered Article 50 of the Lisbon Treaty and officially launched procedures for Britain’s exit from the EU.
Eurobank underlined that the travel ability of Britons may be affected by a decrease of income, combined with the increase of inflation and a possible downgrade of the pound against the euro.
Furthermore, Eurobank estimates that procedures and the cost of traveling abroad may change for the British, for example in case a visa is required for traveling abroad. Eurobank’s report underlines that the UK market remains a “main source” of tourists for Greece.
The shipping sector may also be affected due to a drop in demand for shipping services, especially if a severe disorder occurs on international trade.
Eurobank’s report also focuses on commerce and exports, noting that a hypothetical decrease of Greece’s exports to the EU countries by 1 percent, would result in a decrease of Greece’s GDP by 0.15 percent (and vice versa). A deterioration in the forecast of other EU economies would negatively affect Greece’s commercial flows.
Greece could also lose EU funds, in case the European Union’s budget is decreased. According to Eurobank, funds allocated through the EU Common Agricultural Policy and other European structural programs to Greece are estimated at a total of 35 billion euros for the 2014-2020 period. This figure may decrease due to the Brexit.