German business group forecasts fall in exports to UK

German business group forecasts fall in exports to UK

A German business group is forecasting that Germany's exports to the UK will slip 1% this year and drop by 5% in 2017 following British voters' decision to leave the European Union.

The Association of German Chambers of Commerce and Industry said it previously predicted a 5% increase in exports to the UK this year but revised its assessment because of the pound's fall and the prospect of weakening investment.

The UK was the third most popular destination last year for German exports, taking goods worth €89.3bn (£76.21 billion).

The group said most businesses expect bilateral trade to remain constant during Brexit negotiations but many expect it to fall once the UK has left the EU, with extra bureaucracy and legal differences a concern.

More on this topic

EU accused of ‘wishful thinking’ over claims UK set to compromise in trade talksEU accused of ‘wishful thinking’ over claims UK set to compromise in trade talks

Stormont executive fails to agree position on Brexit extensionStormont executive fails to agree position on Brexit extension

Brexit transition uncertainty ‘poses threat to stability in Northern Ireland’Brexit transition uncertainty ‘poses threat to stability in Northern Ireland’

Brexit checks must be minimised to avoid economic damage, insists Arlene FosterBrexit checks must be minimised to avoid economic damage, insists Arlene Foster