If there are such disruptions, the German economy would grow by around 1.0 at most, the BDI said.

"A chaotic Brexit is now getting dangerously close to happening. Companies are looking into the abyss in these times," BDI President Dieter Kempf said after the British parliament rejected a Brexit deal.

"Businesses on both sides of the English Channel have no choice but to now fully prepare for a hard Brexit," he added.

(Reporting by Michelle Martin; Editing by Madeline Chambers)