German companies are expecting lower growth and a reduction in exports following the UK’s decision to leave the European Union.
Germany's chambers of commerce expect exports to the UK to fall by around €4bn next year following the vote to leave the European Union.
Reuters reports that last year German companies exported an estimated €89 billion of goods to the UK, making it their third-most important export destination. DIHK, the Germany chambers of industry and commerce, expects a 1% fall in exports to the UK this year compared to 5% growth predicted before the Brexit vote. In 2017, it expects a 5% fall in exports to the UK.
In addition, companies may need to scale back operations, which could lead to job losses both in Germany and the UK as demand falls. German companies employ around 500,000 workers in the UK, according to Reuters.
More than one-third of German businesses expect to scale back their investment in the UK after Brexit, the Financial Times reports.
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