Brexit ‘caused Germany’s economic downturn’

28 Aug 19

Brexit has been the main factor in weakening German exports this year, new data has reportedly shown.

Between April and June the German economy, which is heavily dependent on manufacturing, shrunk by 0.1% compared to the first three months of the year.

And according to Reuters, trade data from the Federal Statistical Office showed falling sales to the UK had a bigger effect on the exports slowdown than anything else.

Even US president Donald Trump’s protectionist policies that have led to a global trade slowdown had less impact, the data reportedly suggested. 

The statistics showed exports to the UK fell by nearly 15% year-on-year in the second quarter of 2019, whereas sales to America actually went up during that same period.

Last year, German exports to the UK made up roughly 6% of overall foreign sales, making it the fifth most common destination.

German sales to the UK experienced a 6% jump in the first quarter of 2019, widely attributed to pre-Brexit efforts to escape potential tariffs ahead of the previous 29 March deadline for Britain’s exit from the EU.

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