Brexit causes panic in Germany as Bavarian economy exports to UK | Politics | News

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Almost a year after the UK left the EU, a study by the Prognos Institute found that Bavarian exports to Britain fell sharply after Brexit. It comes after a German bank praised the UK economy after it pulled out of the EU.

Economists at the Prognos Institute shared that in the first three quarters, Bavarian exports to Britain fell 3%.

Overall exports increased by fifteen percent in total, but imports from Britain fell even more sharply.

The Prognos Institute then warned that trade with the UK could become even more difficult despite the agreement signed by Britain and the EU due to expected differences in technical norms and standards.

Their study indicated, using cars as an example, the European and UK vehicle type approval certificates are no longer mutually recognized.

Economists have warned that new barriers to trade are therefore emerging in many other areas as well, for example due to different product regulations, a lack of mutual recognition of professional degrees and qualifications, and different rules in food law. .

Bertram Brossardt, managing director of VBW, said that while the trade deal has prevented the worst consequences of Brexit, “there can be no question of trade without problems”.

He added: “In trade in goods, we urgently need regulations for the mutual recognition of product regulations.

“In the trade of services, it is important to replace the hotchpotch with regulations from a single source. And we need to simplify the barriers to mutual recognition of qualifications.

“The aim must be to return to constructive cooperation as quickly as possible.

READ MORE: Brits brace for barrage of new rules after EU pullout

In November, an article published Wednesday in the corporate blog of German bank IKB Deutsche Industriebank pointed out that despite predictions of post-Brexit chaos, the UK economy has not collapsed.

They added that in Britain investment has proven to be strong and neither business nor consumer confidence has deteriorated significantly.

Dr Klaus Bauknecht, chief economist at IKB, noted that most of Britain’s current economic problems may be linked not to Brexit but to the government’s response to Covid.

In view of this, he adds that many of the same problems – for example, a reduction in potential growth – can be observed in Germany as well.

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Dr Bauknecht wrote that, for the most part, Brexit has not made the financial difficulties faced by the UK government even worse during the Covid pandemic.

He said: ‘Brexit did not [NHS staff shortage] situation worse, because the number of doctors in Great Britain did not decrease between 2016 and 2020. “

Dr Bauknecht also noted: “The fall in GDP a year and a half ago initially seemed to confirm the pessimists.

“But the UK economy is in relatively good shape again, especially compared to the German economy.

“This is why the Bank of England is already considering the first rate hikes, especially as potential growth estimates support the thesis that the negative consequences of Brexit could remain manageable.”

This is because data from the Office for National Statistics (ONS) and the Bank of England (BoE) showed that the UK’s trade outlook has shrunk globally.

The ONS and the BoE have released data showing UK trading habits over the past 24 years.

In 2016, UK trade flows were around 58% and the EU 72%.

UK trade GDP reached its highest level since 2006 in 2019, when it hit around 62%.

At the same time, the EU hit a high of around 75 percent, its highest level on record.

Both suffered losses when the pandemic struck in 2020, but only the EU has recovered while the UK has not seen trade recover since leaving the bloc.

A government spokesperson told Express.co.uk: “It is too early to draw firm conclusions on the long-term impact of our new trade relationship with the EU and the rest of the world due to the impact of the pandemic and its restrictions on Commerce.

“We have concluded trade deals worth over £ 760 billion with 70 countries plus the EU, and as an independent trading nation we will go further and faster in 2022 as we launch negotiations with India, Mexico, Canada and the Gulf, as well as with obtaining membership in the CPTPP free trade bloc of more than 8 trillion pounds sterling.

“Our business strategy ensures valuable financial investments that drive our world-class exports and bring prosperity to every part of the UK, and we also look forward to seeing our ambitious agreements with Australia and New Zealand come into effect. next year.”

Additional reporting by Monika Pallenberg

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