Investing.com UK - Financial Markets Worldwide
🔺 What to do when markets are at an all-time high? Find smart bargains, like these.See Undervalued Shares

Brexit to dent UK growth by 1.2 percentage points in 2017 - Germany's DIW to paper

Published 02/08/2016, 18:36
Updated 02/08/2016, 18:40
© Reuters. A European Union flag is held in front of the Big Ben clock tower in Parliament Square during a 'March for Europe' demonstration against Britain's decision to leave the European Union, central London

BERLIN (Reuters) - Brexit is expected to reduce Britain's economic growth by 0.3 percentage points this year and 1.2 points in 2017, a study by Germany's DIW economic institute found, according to the Handelsblatt newspaper.

A spokeswoman for the Berlin-based DIW confirmed the gist of the Handelsblatt article but gave no specific details.

The study, to be released Wednesday, echoes findings from a July 20 Reuters poll of economists, which cut the corresponding forecasts by 0.5 points and 1.5 points compared with a survey on June 8.

It is also in line with finding from the Markit/CIPS UK purchasing managers' index (PMI) released on Monday, which showed UK manufacturing shrinking at its fastest pace in over three years in July following the June 23 vote to leave the European Union.

Citing DIW, Handelsblatt also said German economic growth would be reduced by 0.4 percentage points in 2017. The institute said in June that German growth could be reduced by half a percentage point next year.

© Reuters. A European Union flag is held in front of the Big Ben clock tower in Parliament Square during a 'March for Europe' demonstration against Britain's decision to leave the European Union, central London

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.