Post Brexit: German economy slumps worse than UK after referendum vote

HYSTERICAL German investors were panicking as their stock market fell harder than the UK FTSE100 after the world-changing Brexit decision.

By LAURA MOWAT
EXPRESS

Stock markets
GETTY — The German Stock Index has fallen since the monumental vote

The German stock index known as the Dax fell 1,000 points after the Brexit vote – the biggest drop it has seen since the economic crisis in 2008.Key business groups in Germany have said that uncertainty following the seismic UK vote to leave the European Union will hit the German economy hard.

The president of the Federation of German Wholesale, Foreign Trade and Services, Anton Borner, said: “Brexit has happened in a time of uncertainty. That is poison for the economy.”

Stock market
GETTY — Germany’s traders are questioning the future

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Nigel Farage, the leader of the United Kingdom Independence Party (UKIP), makes a statement after Britain voted to leave on the European Union in London

REUTERS

Nigel Farage, the leader of the United Kingdom Independence Party (UKIP), makes a statement after Britain voted to leave on the European Union

The German index known as the Dax fell 1,000 points after the Brexit vote

American analysts have said that the Brexit vote has a 50 per cent chance of causing a worldwide recession.And Germany’s traders and politicians are asking themselves the same question.

It was clear in the financial centre of Frankfurt that the day following Brexit was not an ordinary day for the stock markets and the loss there would go down in history.

Cameron resigns GETTY

David Cameron announced his resignation following the result

Only nationwide mass strikes in Germany on October 16 1989 triggered a more severe drop in the stock market.Friday was described as “black Friday” in the country.

Stock prices were also low in London and Asia as the Euro and the pound plummeted in value.

EU Poll card GETTY

Germany is worried about the future following the shock vote

Despite alarm signals, experts have warned people in Germany not to panic, as it is not clear if the weak euro will remain that way.Bankers have reminded worried Germans that falling prices are a “wonderful opportunity to purchase stocks of companies at a cheaper price.”

The Brexit vote followed a sharp rise in the stock market the immediate days before it.

Although, the experts do not believe that the historic vote would lead to a global stock market crash, they do foresee far-reaching economic consequences and a possible devaluation in the euro.

German industry is particularly concerned about any affects on trade with the UK, which is its third-biggest export market.

Chancellor Angela Merkel is now worried about Germany’s dominant role within the EU and the possibility of other member states to follow the UK out of the bloc.

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http://www.express.co.uk/news/world/683360/German-economy-slumps-post-Brexit-worse-UK