For the first time since Brexit there is a ray of hope in German-British foreign trade. A third of all companies expect sales increases in Great Britain in 2023, according to a survey by the auditing company KPMG and the British Chamber of Commerce in Germany (BCCG), which was available to the German Press Agency in London. Almost half (48 percent) are optimistic about the medium-term view over the next five years. KPMG and BCCG spoke of a trend reversal.
However, Brexit is still leaving its mark: even three years later, a good half (51 percent) of companies are complaining that the economic situation is deteriorating, and only 14 percent see an improvement. More than twice as many companies as in 2021 are planning smaller investments of up to five million euros in Great Britain in the next three years. However, none of the companies surveyed intends to invest more than EUR 250 million.
“Great Britain was the only one of the G20 countries not to reach the pre-corona level of gross national product last year,” said KPMG divisional director Andreas Glunz. “The cause is the braking effect of Brexit.”
German-British trade plummeted
As of January 1, 2021, the UK is no longer a member of the EU Customs Union and Single Market. Since then, German-British trade has plummeted: for the first time since the Second World War, the United Kingdom dropped out of the top ten German foreign trade partners last year.
A last-minute agreement still ensures largely duty-free trade. Nevertheless, trade barriers have emerged. Respondents also complain about this. For more than one in four companies, the increased administrative burden is the main burden. Increased logistics costs and customs duties also continue to cause concern. At the same time, it was said that the central challenges were perceived as less onerous than in the previous year.
136 companies took part in the “German-British Business Outlook” survey. Nevertheless, trends can be discerned. The survey also revealed areas where the UK is doing well. Around a quarter of those surveyed described the United Kingdom as more business-friendly and less regulated than Germany. The biggest business opportunity is therefore the growing sales market.
“Great Britain remains an important economic partner for the German economy on its own doorstep,” said KPMG divisional director Glunz. “This is crucial, especially in times of increasing geopolitical tensions. In the medium term, business believes that the economic situation in Great Britain will improve and is hoping for a rapprochement with the EU.” (dpa)