Mechanical engineering firms are feeling the pinch with exports to the UK plunging by nearly five per cent to €45.6billion (£40.1billion) between January and September.
Exports to all other nations have shot up in the past year but the UK – the country’s primary market – has seen a dramatic slump, according to the German Federal Office of Statistics.
Carl Martin Welcker, president of the German Engineering Association VDMA, told Welt the situation was a “complete bust” and it was all down to Brexit.
He said: “We don’t know what kind of access to goods, services, capital and people will be available after Great Britain leaves the EU.
“As long as there is no clarity our companies will suffer.”
While exports to countries like China, Russia and Mexico are up by more than 20 per cent, the UK has fallen from fourth to fifth as the biggest importer for German mechanical engineering companies.
Mr Welker urged Britain to make investment decisions more quickly to stop German companies facing foul of increased costs.
He warned: “After Brexit any advance services from Great Britain will become goods from a third country. These might not be suitable for further processing in Europe.“
Mr Welker for quick measures to prevent the market regulations from drifting apart after the exit.
He warned: ”Otherwise we will be facing a significant increase of additional costs.”
Car exports to Britain from the German state of Saarland also slumped by 13 per cent in the first half of this year.
And earlier this year, businesses in the German town of Erfurt, Thuringia, pleaded with Angela Merkel to respect Britain’s economic importance over fears of turmoil at home.
The city’s Chamber of Commerce and Industry (IHK) called for “close economic relations” to continue.
Gerald Grusser, managing director of IHK, said: “Great Britain is the second-largest trading partner for the Thuringian economy with a total volume of nearly €1.8billion (£1.5billion) in 2016.
“The still close economic relations with the United Kingdom are therefore of particular importance for local businesses.”
The Federation of German Industries (BDI) warned German firms operating in the UK to brace themselves for a “very hard Brexit” and told its members to take precautions or be prepared to face heavy economic losses.
BDI managing director Joachim Lang said: “The unbundling of one of Germany’s closest allies is unavoidably connected with high economic losses.
“The German economy is preparing for all possible scenarios.
“A disorderly exit by the British from the EU without any follow up controls would bring with it considerable upheaval for all participants.”
Additional reporting by Monika Pallenberg.