IfW in the News

Growth in Germany stumbles after Brexit


Stefan Kooths talks about how the Brexit affects German exports.

Excerpt from the Article

(...) The UK is Germany's biggest car export market and overall its third largest export customer, after America and France. Stefan Kooths, head of forecasting at the Kiel Institute for the World Economy , said: "German exports probably suffered a bit from the appreciation of the euro against the pound. It's not dramatic but it's likely to have acted as a brake."

Professor Kooths expected that over the longer term Brexit would have a limited impact on the German economy. "It's becoming ever clearer how complicated Brexit is going to be. There will have to be a gradual, more lengthy period of transition to prevent the UK from losing its access to the single market overnight. If it turns into a more medium-term process, which we expect, German exporters will have long enough to adjust. We have seen that when certain export markets weaken, industry usually manages to successfully channel exports to other regions and find new markets."