Brexit leaves its traces: pharmaceuticals and car industry affected
Still, not everything went well for the German export industry in 2017. Brexit left
its traces in the German export statistics. In 2017, German goods exports to the
UK dropped 1.8% in nominal terms; this was the second decline in a row (2016:
-3.5%). Of course, these developments are not exclusively due to the Brexit
decision. Nevertheless, economic uncertainties around the decision and the
depreciation of sterling versus the euro played a major role.
As expected, the German automotive and pharmaceuticals industries were hit hardest.
Automotive exports to the UK were down 8.3% in 2017 (2016: -6.6%). The
share of the UK in total German automotive exports fell from 12.8% in 2015 to
“only” 10.6%. Nevertheless, Germany still registered a trade surplus of more
than EUR 19 bn in the automotive sector versus the UK (this is equivalent to
41% of the total bilateral trade surplus).
This includes deliveries by German
automotive suppliers to car factories in the UK.
EU Forecast
euf:ba.18.j:182/nws-01