The negative effects of Brexit on the overall economy in Hessen and Frankfurt-Rhine-Main will remain manageable despite the close economic ties with the UK. “In the end, Hessen should manage Brexit better than the other German federal states”, said Prof. Mathias Mueller, President of the Frankfurt am Main Chamber of Commerce and Industry (CCI) at a presentation of a study commissioned by the CCI and conducted by the ifo Institute for Economic Research in Munich.
The reason for the less unfavourable development is the particular strength of the financial sector and business-related services in the Frankfurt-Rhine-Main metropolitan region, with Frankfurt as its centre. This differentiated infrastructure will protect Hessen from turbulences coming from a single market, such as the UK. In the case of a hard Brexit, price-adjusted gross domestic product in Hessen would be 0.17 percent lower and 0.08 percent with a soft Brexit; the losses would thus be noticeably lower than in Germany as a whole