Disorderly UK exit ‘would hamper German growth’

Germany is bracing itself for a hard Brexit. Above, a footbridge connects government buildings with the Reichstag, in Berlin. (AP Photo)
Updated 17 January 2019

Disorderly UK exit ‘would hamper German growth’

  • BDI President Dieter Kempf: A chaotic Brexit is now getting dangerously close to happening. Companies are looking into the abyss in these times
  • Dieter Kempf: Businesses on both sides of the English Channel have no choice but to now fully prepare for a hard Brexit

BERLIN: Europe’s largest economy will expand by 1.5 percent in 2019 if there is not a disorderly Brexit but growth will be weaker if there are major disruptions to trade between Britain and the EU, Germany’s BDI industry body said on Thursday.
If there are such disruptions, the German economy would grow by around 1.0 at most, the BDI said.
“A chaotic Brexit is now getting dangerously close to happening. Companies are looking into the abyss in these times,” BDI President Dieter Kempf said after the British Parliament rejected a Brexit deal.
“Businesses on both sides of the English Channel have no choice but to now fully prepare for a hard Brexit,” he added.


Africa development bank says risks to continent’s growth ‘increasing by the day’

Updated 18 August 2019

Africa development bank says risks to continent’s growth ‘increasing by the day’

  • The trade dispute between US and China has roiled global markets and unnerved investors
  • African nations need to boost trade with each other to cushion the impact of external shocks

DAR ES SALAAM: The US-China trade war and uncertainty over Brexit pose risks to Africa’s economic prospects that are “increasing by the day,” the head of the African Development Bank (AfDB) told Reuters.
The trade dispute between the world’s two largest economies has roiled global markets and unnerved investors as it stretches into its second year with no end in sight.
Britain, meanwhile, appears to be on course to leave the European Union on Oct. 31 without a transition deal, which economists fear could severely disrupt trade flows.
Akinwumi Adesina, president of the AfDB, said the bank could review its economic growth projection for Africa — of 4 percent in 2019 and 4.1 percent in 2020 — if global external shocks accelerate.
“We normally revise this depending on global external shocks that could slowdown global growth and these issues are increasing by the day,” Adesina told Reuters late on Saturday on the sidelines of the Southern African Development Community meeting in Tanzania’s commercial capital Dar es Salaam.
“You have Brexit, you also have the recent challenges between Pakistan and India that have flared off there, plus you have the trade war between the United States and China. All these things can combine to slow global growth, with implications for African countries.”
The bank chief said African nations need to boost trade with each other and add value to agricultural produce to cushion the impact of external shocks.
“I think the trade war has significantly impacted economic growth prospects in China and therefore import demand from China has fallen significantly and so demand for products and raw materials from Africa will only fall even further,” he said.
“It will also have another effect with regard to China’s own outward-bound investments on the continent,” he added, saying these could also affect official development assistance.
Adesina said a continental free-trade zone launched last month, the African Continental Free Trade Area, could help speed up economic growth and development, but African nations needed to remove non-tariff barriers to boost trade.
“The countries that have always been facing lower volatilities have always been the ones that do a lot more in terms of regional trade and do not rely on exports of raw materials,” Adesina said.
“The challenges cannot be solved unless all the barriers come down. Free mobility of labor, free mobility of capital and free mobility of people.”