Brexit Effects

July, 2018

As we reported earlier, a study by Germany Trade & Invest (GTAI) found that the number of foreign direct investment (FDI) projects originating from the UK jumped by 21% in 2017 in what is being viewed as a potential “Brexit effect.”

While financial services and ICT were the main recipient industries of investment, there was also a sharp increase in the shareholding acquisition of British companies and investors in German companies. With 18% of all British FDI in Europe (which went up 33% in 2017), Germany is the most popular investment destination.

A separate GTAI study predicts that there will be grave trade consequences for post-Brexit Britain, but that these will create opportunities for countries in the EU to gain competitive advantage, particularly in the automotive, chemicals, electronics and machine-building industries.

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