Britain to lose more than 300 billion euros over Brexit, says expert

Muenster, Germany (dpa) - The British decision to leave the European Union will hit the economy of the entire bloc, with Britain itself set to lose more than 300 billion euros (334 billion dollars) by 2030, a German economic expert has told dpa.

"It's a situation in which everyone loses, the EU member states and most dramatically Britain itself," said Andreas Esser, head of the economics section at the Guetersloh-based Bertelsmann Foundation.

If the remaining 27 EU members states stick to their promise of harsh measures against Britain, the country's economic isolation could have serious consequences, according to Esser. He predicts that the German economy too could lose more than 55 billion euros in trade deals.

The figures had originally been compiled for a study published in 2015, but now the scenario was coming true as the British have decided to leave the EU despite warnings about the economic repercussions.

"The British have voted for a phase of uncertainty," said the expert, adding that this uncertainty would have a negative impact on consumer spending and investments, leading to lower economic performance in the coming months and years.

Gross domestic product (GDP) in Britain could drop by up to 14 per cent by 2030 - the time it will take for the full consequences of economic decisions to be felt.

More than 50 per cent of Britain's trade is with other EU countries, according to the report. If the country loses its trading privileges within the bloc, trade duties will make the exchange of goods and services more expensive.

Among the sectors hit hardest by the Brexit are the engineering and car industries as well as pharmaceuticals and chemicals.

The banking sector, which is of prime importance for the British economy, will also be hit by isolationism as investors are likely to withdraw.

However, other financial centers in Europe, such as Frankfurt or Paris could benefit if investment moves from Britain to the Continent, Esser said.

Last update: Sat, 25/06/2016 - 14:01

More from Business

China-owned Volvo Cars' third-quarter net profit doubles

China-owned Volvo Cars on Thursday said third-quarter net profit doubled, driven by strong sales in China and the...

HT revenues stagnate, net profit rises in first nine months

The Croatian Telekom (HT), posted a net profit of 752 million kuna in the first nine months of 2016, while its...

Samsung third-quarter earnings drop after Note7 woes

Samsung announced reduced profits for the third quarter on Thursday, as the company struggles with the aftermath of...

Croatian Postal Bank posts record net profit of HRK 147.5 mln

The Croatian Postal Bank (HPB)'s net profit in the first nine months of 2016 was 38.1% higher compared to the same...

Apple earnings down, iPhone sales decline

Apple's latest results, posted Tuesday, showed a drop in revenue and declining iPhone sales.