Regulatory burdens have seen over half of businesses hit by Brexit (54%) across the country, new figures show.

Data published by the Central Statistics Office (CSO) also shows that two in five (40%) enterprises had difficulty sourcing materials and products from suppliers abroad due to Covid-19. More enterprises (47%) bought goods and materials from suppliers abroad than supplied to enterprises overseas (24%).

Raw materials (21%) and machinery and other technical equipment (20%) used in a firm's production were the most common purchases from abroad.

The UK was the most popular location for both global purchasing and supply.

The Northern Ireland Protocol was created as part of the Brexit agreement as a way to avoid a hard land border on this island.

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It did so by moving regulatory and customs processes to the Irish Sea, creating new checks on goods shipped from Great Britain to the North.

Colin Hanley, in the CSO business statistics division, said: "The results of this publication show the level of participation in global value chains (GVC) arrangements in 2020."

He said almost half (47%) of enterprises of 50 or more people bought goods and materials from abroad for use in their own production, while 24% supplied goods/materials abroad.

The majority of enterprises that bought or supplied goods and services abroad did so with the UK.

Products designed by another company for resale on domestic or foreign markets was the least reported type of purchase, the data also revealed.

The cancellation of orders or a decline in incoming orders from domestic customers was the most common impact of Covid-19, it further found.

Almost half of enterprises said they had been hit by cancellation of orders or a decline in incoming orders from domestic customers due to Covid.

A decline in orders from customers abroad affected 34% of enterprises.