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German Trade Association Fears Export Stagnation Amid Brexit Fallout
Containerterminal in Hamburg

German exports could stagnate as early as 2017 due to economic uncertainty created by Britain’s decision to leave the European Union, according to the German trade association BGA.

“The repercussions will impact us massively in the near future,” BGA chief Anton Boerner said of Brexit in an interview with Reuters.

As global demand for German exports slows, the trade association has slashed its outlook for 2016. In April, the association was projecting that German exports would grow by 4.5 percent this year.

Now, Mr. Boerner said, “I think growth of only between 1.8 and 2.0 percent is feasible this year.” Last year, German exports grew by 6.5 percent.

The first concrete measure of Brexit’s impact on German exports will come next week when Germany publishes trade figures for July.

Britain is Germany’s third most important trade partner. It’s unclear whether or not Britain’s decision to leave the European Union will result in new trade barriers between the two countries. They are currently both members of the E.U. single market.

“Exports are set to stagnate, possibly as early as 2017 if viewed pessimistically,” Mr. Boerner said. “We’re hitting the ceiling.”

Even before Brexit, German exports to Britain had stagnated year on year in the first six months of 2016 at €44.8 billion, or $50.1 billion.

Picture Source: DPA

Deutsche Bank Sells Argentina Subsidiary to Banco Comafi
cryan bloomberg

Germany’s largest bank has sold its subsidiary in Argentina to a local company as part of its withdrawal from South America.

Deutsche Bank agreed to sell the unit to Banco Comafi, which is based in Buenos Aires, as part of its larger strategy of streamlining its footprint.

In October, Deutsche Bank announced plans to cut 26,000 jobs and is in the process of withdrawing or cutting jobs in several countries including Brazil and Mexico in the Latin America region.

The bank’s Argentine unit has 86 members of staff and the sale is expected to go through in early 2017, following regulatory approval.

Deutsche Bank will keep serving its Argentine customers via its regional hubs.

 

Source: Bloomberg

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