UK economy will shrink without Brexit deal: IMF
Britain’s economy will shrink if the country leaves the European Union next year without a Brexit deal and any deal will leave the country financially worse off than staying in, the International Monetary Fund said on Sept. 17.
Failure to get a deal would leave to a contraction, IMF Managing Director Christine Lagarde said.
“The larger the impediments to trade in the new relationship, the costlier it will be. This should be fairly obvious, but it seems that sometimes it is not.”
Britain is due to leave the EU in March next year but London and Brussels have yet to strike a deal to secure a transition period. Prime Minister Theresa May is hoping to make progress towards a deal when she meets fellow EU leaders this week.
Britain’s economy -- the world’s fifth-biggest -- slowed after the 2016 referendum decision to leave the EU and it continues to be outpaced by most other rich nations.
However, stronger-than-expected data last week showed the economy had its fastest growth in nearly a year, helped by the World Cup and hot summer weather.
Hammond has been criticized by some Brexit supporters who say he wants to maintain a relationship with Brussels that would keep Britain under too much influence from the EU.