DIW: Hard Brexit Would Cost Much to German Economy
Uncertainty about UK’s exit from the EU is increasing. Final result of the Brexit process will have far-reaching implications for the unity of the United Kingdom and other countries. Both Britain and the European Union intend to avoid a scenario of a hard Brexit.
A hard Brexit arrangement would likely see the UK give up full access to the single market and full access of the customs union along with the EU. Initially, this would mean the UK would likely fall back on World Trade Organisation (WTO) rules for trade with its former EU partners.
The DIW economic institute stated, that a hard Brexit would hit the export-oriented German economy much. DIW cut its forecast for German 2018 economic growth by 0.3% to 1.5% and lowered its estimate for 2019 growth by 0.1% to 1.6%.