Hard Brexit could cut Denmark’s economy 1 percent, government says

COPENHAGEN (Reuters) – A hard Brexit could reduce the Danish economy as much as 1 percent, an analysis by the Danish economy ministry showed on Tuesday.

British Prime Minister Theresa May on Monday postponed a parliamentary vote on her Brexit deal to seek more concessions. But the European Union refused to renegotiate and lawmakers doubted her chances of winning big changes.

By “hard Brexit”, the government study means all trade with Britain would be conducted according to World Trade Organization rules. Seven percent of Danish exports go to Britain, making it Denmark’s fourth-largest market. Imports from Britain also account for around 7 percent of Danish imports.

“It is important that the Danish companies prepare themselves,” Economy Minister Simon Emil Ammitzboll-Bille said in a statement.

Some 60,000 people, or around 2 percent of the workforce, are employed directly or indirectly as a result of the exports to Britain, it said.

However, a hard Brexit would not hurt employment over the long term, the study said. Goods exported to Britain now would be re-routed to other markets, it said.

Denmark mainly exports meat, dairy products, wind turbines and machinery to Britain.

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