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German exports growth cut on Brexit

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Germany’s BGA trade association slashed its 2016 forecast for export growth, its head said last week, predicting sales abroad may later stagnate as the delayed impact of Brexit hit home.

Global demand for German imports has slowed significantly, with several factors increasing uncertainties and complicating investment decisions, Anton Boerner said.

“The repercussions will impact us massively in the near future,” he told Reuters in an interview. That effect had yet to be felt in the export sector, which the association forecast in April would grow by 4.5% this year.

Exports – traditionally the main driver of Germany’s economy – had increased by 6.5% as recently as 2015, but Mr Boerner said the outlook beyond 2016 was more modest.

“Exports are set to stagnate, possibly as early as 2017 if viewed pessimistically,” Mr Boerner said.
German exports to Britain, its third most important market, stagnated compared with last year in the first six months at around €44.8bn.

Exports to the USA and France, Germany’s two biggest markets, fell 4% to €53.4bn and 2% percent to €52.1bn respectively in the first half.