The U.S.-China trade war and Brexit continue to significantly affect global economic confidence.
However, when it comes to the recent collapse in Germany’s export shipments, this has been caused mainly due to Brexit rather than the U.S and China trade war, according to Reuters.
German exports to Britain fell by almost 15% year-on-year in the second quarter following a jump of roughly 6% in the previous three months, according to trade figures from the Federal Statistics Office (FSO).
In 2018, German exports to Britain accounted for around 6% of overall foreign sales, making the United Kingdom the fifth most important export destination for German goods producers.
The FSO revealed that Germany’s GDP fell by 0.1% compared with the previous quarter, taking the annual growth rate to 0.4%.
Meanwhile, the European Central Bank (ECB) has hinted it could cut interest rates to tackle a slowdown in the eurozone economy.
In July, the ECB said that a weak manufacturing sector and uncertainty over Brexit and trade threatened to hinder growth. It forecast rates at current or lower levels until mid-2020.
With this Prime Minister Boris Johnson’s Brexit showdown in parliament this week and increased chances of a snap election, it would seem likely that German exports to Britain will continue to slide.