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German business group forecasts fall in exports

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A German business group is forecasting that Germany’s exports to Britain will fall 1 percent this year, and drop by 5 percent in 2017 following British voters’ decision to leave the European Union.

The Association of German Chambers of Commerce and Industry said that it previously predicted a 5 percent increase in exports to Britain this year, but revised its assessment because of the fall in the value of the pound and the prospect of weakening investment.

Britain was the no. 3 destination last year for German exports, importing goods worth 89.3 billion euros ($98.8 billion).

The group said most businesses expect bilateral trade to remain constant during negotiations, on a British exit, but many expect it to fall once Britain has left the EU, with extra bureaucracy and legal differences a concern.