Institutional Investors say No-Deal Brexit will Cause Major Problems for Germany, MPG Research shows

Nearly half (49%) say bad Brexit could spark global recession

Nearly seven out of 10 (68%) institutional investors say a no-deal Brexit would cause Germany major problems, according to new research1 by Managing Partners Group (MPG), the international asset management group.

Only 13% disagree with this, according to the research, which also found that nearly half (49%) say that a bad Brexit could even spark a global recession.

Jeremy Leach Chief Executive Officer, Managing Partners Group, commented: "Germany might be regarded as the financial powerhouse of Europe but the UK is still the world’s biggest importer of German goods. It is inevitable that Brexit will impact the UK and Germany more than the rest of the European Union that has been surprisingly laissez faire about Brexit."

"Germany might be regarded as the financial powerhouse of Europe but the UK is still the world’s biggest importer of German goods. It is inevitable that Brexit will impact the UK and Germany more than the rest of the European Union that has been surprisingly laissez faire about Brexit."

"But the other countries should be aware no-deal would also damage the EU balance sheet, from which they are net beneficiaries rather than contributors. I am surprised that Angela Merkel has not been more robust with her EU co-members, who should be backing Germany and the financial future of the trading bloc, while Emmanuel Macron has been somewhat maverick about his country’s need for international trade given France is the UK’s fourth largest global trading partner."

"No deal could certainly tip the EU into a recession, if not the world economy, which is fragile because of the US-China trade war, tensions in the Middle East and unrest in Hong Kong."

MPG is a multi-disciplined investment house that specialises in the creation, management and administration of regulated mutual funds and issuers of asset-backed securities for SMEs, financial institutions and sophisticated investors. It currently manages funds with a gross value of $500m.

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