ifo Institute: UK Share of German Trade Greatly Reduced Since 2015
In the course of the Brexit crisis, the share of German trade made up of exports and imports to and from the United Kingdom has already shrunk significantly. “While in 2015, 7.4 percent of German exports went to the UK, in 2018 it was only 6.2 percent,” says Martin Braml, ifo’s foreign trade expert. “It’s a similar story with imports, with the UK’s share dropping from 4.25 percent to 3.75 percent.”
Overall, the volume of exports to the UK would have been EUR 16.2 billion higher, and that of imports EUR 5.5 billion higher, if they had maintained their higher 2015 percentages in 2018. The figures include only goods, not trade in services.
“However, the political uncertainties seem to be diminishing and a no-deal scenario is becoming less likely. Trade stands to benefit from this once again in the future,” Braml adds. “The pound sterling has recently recovered, which should also push demand for German products back up. In addition, the UK economy as a whole is in good shape and unemployment is low.”
