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Majority of German SMEs see no impact from no-deal Brexit

About 60% of small and medium-sized companies in Germany do not expect a no-deal Brexit to impact their businesses, according to a survey by Germany's KfW Group.

However, 25% of companies said that a no-deal Brexit would hamper their operations.

Four out of five companies have not prepared for a hard Brexit scenario as they do not foresee a direct impact from it.

The U.K. is scheduled to leave the single currency bloc Oct. 31 unless an extension is agreed upon.

The survey results showed that 15% of export-oriented services providers expect that a no-deal Brexit will benefit them amid declining competition from Britain and a potential need to adjust trading relationships in a no-deal scenario.

The survey targeted about 2,000 small and medium-sized companies with revenue of up to €500 million between Sept. 11 and Sept. 23.

German GDP contracted in the second quarter and while German business sentiment improved in September, the risk of a technical recession continued to loom.