DIW analysis: experts expect serious consequences in Proposed referendum on United Kingdom membership of the European Union-Germany – THE WORLD

The uncertainty caused by the Proposed referendum on United Kingdom membership of the European Union-vote is the European economy, according to economic researchers continue to weigh years. Germany’s strong export-oriented economy will, however, “more than the euro area as a whole” are suffering, so the gloomy forecast of the German Institute for Economic Research (DIW). “Even after two years, gross domestic product will still be below the level that would have been without this uncertainty shock”, according to an analysis published Wednesday.

According to the calculations of the macroeconomists uncertainty will ensure that the gross domestic product around 0.2 percentage fails lower in the euro area after eight months than it without the Proposed referendum on United Kingdom membership of the European Union-vote would have been the case. For Germany, they quantify the minus 0.4 percent.

The effect can be explained according to the information primarily from the fact that after the Proposed referendum on United Kingdom membership of the European Union-vote less invested becomes. In Germany, companies are, according to the DIW analysis relate primarily less money in equipment. Hardly affected however, expected to decline investment in buildings and in the research and development area, as these are designed more in the long term.

Overall, the researchers figured the minus at the investments in Germany to one percent. The “bottom” will be expected to be achieved one year after the Proposed referendum on United Kingdom membership of the European Union recommendation.

For unemployment declared economists, this should “not dramatic by the Proposed referendum on United Kingdom membership of the European Union, but be noticeably higher “. Inflation will remain very low.

“In order to reduce the economic insecurity of entrepreneurs and companies, the future relationship between Britain and the European Union should, if possible swiftly resolved “, the DIW researchers demanded. To mitigate the Proposed referendum on United Kingdom membership of the European Union-effects, it should drag politics into consideration to encourage business directly. In addition, the state must invest even more.

The British had in a referendum on June 23, a majority that their country leaves the European Union , The decision resulted inter alia in the global stock market crash and caused great concerns about economic consequences of.

So what about the British economy

              The Yes for withdrawal from the EU has shocked the British economy. The Bank of England lowered its key rate to a record low of 0.25 percent. Experts expect a further price fall of the British pound Source:. The World

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