Berlin/London, 9 October 2025 – According to a survey by KPMG in Germany in collaboration with the British Chamber of Commerce in Germany (BCCG), there is a strong sense of optimism among German companies regarding improved relations with the UK. The seventh “German-British Business Outlook 2025” found that 85% of German companies anticipate improved relations between the EU and the United Kingdom, with 40% expecting “significantly closer” cooperation.
The survey, conducted between 20 May and 8 August 2025, involved 120 companies, with 75% based in Germany and 25% in the UK. It also revealed that 48% of German companies expect increased sales in the German-British corridor in the current financial year, and 72% are optimistic about the next five years.
However, trade figures serve as a reminder that since the Brexit referendum in 2016, trade volume between the two countries has decreased by a third. The recent increase in exports from Germany to the UK is largely due to higher gold sales on the London Gold Exchange. Adjusted for this effect, exports have remained stagnant at around EUR 73 billion.
To improve economic conditions, 60% of companies are asking the British government to seek improved trade relations with the EU, and 43% are in favour of reducing trade barriers. Additionally, 55% of companies are urging the German government to use the upcoming 2026 review of the EU-UK trade agreement to achieve better economic conditions.
The survey also highlighted the growth opportunities in the United Kingdom, with 48% of German companies seeing it as a growing sales market. Transforming sectors, such as advanced manufacturing, clean energy, digital technologies, life sciences, and defence, are particularly attractive, with 30% of respondents seeing concrete opportunities in these areas.
The most significant change compared to the previous year is the UK’s trade agreements, with 25% of German companies now considering them to be a relevant growth driver, up from just 8% in the previous year.
Key areas of cooperation between the two countries include digitalisation and defence, with 45% and 43% of respondents, respectively, seeing opportunities for collaboration in these areas.
However, the survey also pointed out that new regulations between the UK and the EU are putting pressure on companies, with the introduction of the Electronic Travel Authorisation (ETA) in 2025 affecting 32% of companies and changes to immigration rules affecting 23%.
The full results of the “German-British Business Outlook 2025” are available for download. According to Andreas Glunz, Managing Partner International Business at KPMG in Germany, “The new agreements concluded between Germany and the United Kingdom in 2025 go beyond symbolic gestures – they are promising building blocks of a new European architecture. Germany and the United Kingdom can jointly strengthen their economic and security policy ties and take a lead in Europe.”
Michael Schmidt, President of the British Chamber of Commerce in Germany (BCCG), also emphasized the need for reliable economic policy, stating, “Companies are signalling a clear comeback for the British market. It is crucial that these initial signs develop into a stable trend. This requires reliable economic policy.”
For further information, please contact:
KPMG in Germany
Katrin Häbel
+49 69 9587 4228
khaebel@kpmg.com
British Chamber of Commerce in Germany (BCCG)
Corinna Schlag
+49 173 603 83 71
presse@bccg.de
