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Brexit likely to hit German exports next year - study

German exports are likely to fall by 9% on the year in 2017 due to the weaker pound - study
German exports are likely to fall by 9% on the year in 2017 due to the weaker pound - study

The impact of Britain's vote to leave the European Union will shave around 0.25 percentage points off growth in Germany, Europe's largest economy, in the coming year.

This is according to a study quoted in a regional German newspaper.

Exports, which have traditionally powered the German economy, are likely to fall by 9% on the year in 2017 due to the weaker pound, according to the study by the IW Cologne Institute for Economic Research. 

Last year German companies exported goods worth about €89 billion to Britain, making the UK their third most important export destination. 

Researchers at the IW said the weaker pound against the euro, along with an expected decline in growth in Britain, would lead to lower growth in Germany even before Britain has left the EU. 

In the past few weeks, concerns about a "hard" Brexit by Britain and a hardline stance by the EU in the negotiations that are likely to start next year saw sterling take a battering and fall to a record low on trade-weighted terms. 

Imports to Germany will likely also fall by around 3.5%, the researchers said.