Study: Brexit could reduce Czech GDP by 1.1 percentage points

Brexit could lead to a drop in the Czech gross domestic product by up to 55 billion crowns, or 1.1 percentage points, according to a study published on Wednesday by the retail savings bank Česká spořitelna.

The United Kingdom’s departure from the European Union could also trigger the laying off of up to 40,000 workers, according to the survey. Hardest hit will be the Czech automotive, electronics and machinery production sectors, it says.

Direct Czech exports to the UK total about 210 billion crowns per year, about 5 percent of total Czech exports and four percent of GDP, respectively. Indirect exports account for another 120 billion crowns.