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Following Britain’s departure from the EU last year, several German companies have reported trade barriers and the preference for domestic competitors in post-Brexit Britain, according to a new survey by the German Chamber of Commerce and Industry (DIHK).
The survey asked 3,200 companies worldwide.
According to the study, 43 percent of German companies in the UK said they were affected by the trade barriers.
It also found around 55 percent of German companies in Britain complained of a lack of staff.
The ongoing coronavirus pandemic has also caused problems in the supply chain for around 85 percent of German companies in Britain.
German Chancellor Olaf Scholz
Prime Minister Boris Johnson
Even with missing goods (37 percent) and increased legal uncertainty (25 percent), German companies in the UK have experienced an above-average impact on their businesses.
According to the survey, between 2016 and 2021, the UK slipped from being Germany’s third most important export market to its eighth.
DIHK foreign trade director, Volker Teier, said: “The smooth exchange of goods and services between Germany and Great Britain is getting more and more out of step with their exit from the common internal market.”
In October, the German economy was on the brink of disaster after its inflation reached its highest level in 28 years.
German inflation soars
According to the Federal Statistical Office, consumer prices rose by 4.5 percent throughout October compared to the same month last year.
The Wiesbaden authority last measured an inflation rate of 4.5 percent in 1993.
In September, Inflation had already passed the four percent mark at 4.1 percent.
Compared to September, consumer prices rose by 0.5 percent in October.
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Imported goods rose by almost 17 percent – as much as they did during the second oil crisis in 1981.
Over the year, natural gas imports rose by 178 percent, with electricity rising by 136 percent year-on-year.
Coal and iron ore have also seen the price of imports rise by 118 and 97 percent respectively.
In addition, the withdrawal of the temporary VAT cut is now having a full impact.
Germany’s inflation soared
The regular VAT rates have been in effect again since January, so goods and services are tending to become more expensive again.
According to estimates, it is believed inflation rates of around five percent are possible until the end of the year.
For the start of 2022, inflation is likely to decrease noticeably.
But it is expected to be above two percent by the middle of the year.
German inflation soared in October
According to the Federal Statistical Office, the last time the Wiesbaden authority put a four before the decimal point was back in December 1993, when it was at 4.3 percent.
Thomas Gitzel, chief economist at VP Bank, previously warned: “The risks of inflation are currently increasing significantly.
“So far, it has been safe to say that the rise in inflation is temporary.
“But the now significantly higher raw material prices are changing the starting position.”
Additional reporting by Monika Pallenberg