24.9 C
New York
Sunday, August 14, 2022

German firms ill-prepared for no-deal Brexit, study shows

German firms ill-prepared for no-deal Brexit, study shows© Reuters. FILE PHOTO: Informal meeting of EU leaders in Salzburg

BERLIN (Reuters) – Most German firms that export to Britain are poorly prepared for a no-deal Brexit, a survey by the IW economic institute showed on Tuesday, highlighting the risk that a disorderly British exit from the EU could hurt Europe’s largest economy.

Britain is due to leave the European Union on March 29, with London and Brussels yet to secure an agreement on the Brexit terms and avoid a disruptive “no deal” scenario.

The IW survey of more than 1,100 German firms that export industrial goods and services to Britain showed about 30 percent had made no provisions for a no-deal Brexit, with a further 44 percent having made only low-scale preparations.

IW economist Juergen Matthes said the results of the survey were alarming, adding: “Whoever believes they can still wait before making an emergency plan is mistaken.”

Last month, Germany’s BDI industry association said a so-called hard Brexit would spell enormous trouble for tens of thousands of companies and hundreds of thousands of workers throughout Europe.

Several economic institutes said last week the German economy probably shrank in the third quarter after posting quarterly growth rates of 0.4 percent in the first and 0.5 percent in the second quarter.

However, data released on Tuesday showed German industrial orders rose unexpectedly in September, suggesting the economy ended the third quarter on a solid footing.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source: Investing.com

Related Articles

Stay Connected

- Advertisement -

Latest Articles

Popular Articles