German industries remain optimistic despite Brexit worries

German industrial companies remained optimistic over their business, defying worries of a Brexit on Thursday. Nearly two-thirds of German industrial companies say a British exit from the European Union won't hurt their business, a poll by the Ifo economic institute showed on Wednesday, albeit underlining differences in size and sector.

According to the survey, 61 percent of respondents said a Brexit would have no negative consequences for their business while 38 percent said it would cause damage. Larger companies, those with more than 500 employees, were more concerned, with 53 percent of them saying a British exit would have negative consequences for their business.

Looking at different sectors, firms in the electronics, automobile and metals industry were most concerned while food and textile companies were the least unsettled, Ifo added in its report. With a total trade volume of 127.5 billion euros, Britain remains Germany's fifth biggest trading partner after the United States, France, the Netherlands and China. For the UK, Germany is the most important trade partner, ahead of the United States.

However, German exports are likely to suffer setback this year, owing to external risks, including uncertainty over Britain’s exit from the European Union, coupled with the upcoming elections in the United States and the EU, the head of BGA trade association said Monday.

The DIW economic institute DIW has warned a British exit would likely lead to higher export tariffs, reducing German trade and knocking up to half a percentage point off growth in Europe's biggest economy next year, Reuters reported.