Bank Austria expects an unregulated Brexit in Great Britain “no dramatic, but noticeable effects”. “In view of the many points of contention, it is likely to come to a very thin deal,” estimates the UniCredit subsidiary. The Austrian vehicle industry would be hardest hit by potential tariffs; regionally, a Brexit without a deal would particularly affect Styria and Upper Austria.
In the previous year Austria exported goods worth 4.5 billion euros and services worth 2.8 billion euros to the United Kingdom. That is 3 percent and 4.1 percent of all Austrian goods and services exports. In 2019, Austria achieved an export surplus of EUR 1.7 billion and EUR 300 million in both the trade in goods and in the service sector, Bank Austria economist Robert Schwarz calculates in a press release today.
The uncertainties about the future economic relations between the EU and the United Kingdom and the corona pandemic led to a massive decline in goods trade between Austria and the United Kingdom from January to July 2020. The decline in goods exports from January to July was more than half a billion euros or 20 percent compared to the same period last year. Almost half of the decline is due to the slump in vehicle exports, Schwarz points out.
(Conclusion) stf / ivn