German exports to Britain are forecast to fall both this year and in 2017 due to the country's vote to leave the European Union, a business group said Thursday.

The Association of German Chambers of Commerce and Industry is forecasting that exports from Germany, Europe's biggest economy, will slip 1 percent this year and 5 percent in 2017, ABC news reported.

It had previously predicted a 5 percent increase in exports to Britain this year but revised its assessment because of the fall in the British pound, which makes German exports priced in euros more expensive in Britain, as well as the prospect of weakening investment.

Britain was the no. 3 destination last year for German exports, taking goods worth 89.3 billion euros ($98.8 billion).