The International Monetary Fund warned on Tuesday that Britain\nwould suffer economic damage equivalent to at least 2-3 years of normal growth\nfrom now until the end of 2021 if it leaves the EU without an exit agreement.<\/p>\n\n\n\n
The fifth-largest economy in the world could leave the European\nUnion on Friday, disrupting ties with the bloc it joined 46 years ago if Prime\nMinister Theresa May does not come to an agreement with the European Union\nleaders on Wednesday.<\/p>\n\n\n\n
The IMF said that even under the UK’s non-relativistic EU exit\nscenario, with no delay on the borders and minimal unrest in the financial\nmarket, the economy will grow by 3.5 percent less by the end of 2021 than it\nwould provide the country would leave the EU more smoothly.<\/p>\n\n\n\n
“The increase in trade barriers has an immediate negative\nimpact on UK foreign and domestic demand,” the IMF said.<\/p>\n\n\n\n
The IMF said the EU economy would also suffer, but less than\nBritain, with a possible 0.5 percent decrease in GDP compared to a smooth\nBrexit.<\/p>\n\n\n\n
British exports to the European Union and other countries with\ntrade deals with the EU will face tariff and regulatory barriers if Britain\nreturns to the rules of the World Trade Organization favored by some EU\nsupporters.<\/p>\n\n\n\n
Brexit supporters accused the International Monetary Fund (IMF)\nof making politically motivated predictions in the past.<\/p>\n\n\n\n
In its report on Tuesday, the IMF said the worst-case scenario of\nBrexit, which does not include any deal involving border delays and financial\nmarket turmoil, would increase the damage to about 4 percent of GDP by 2021.<\/p>\n\n\n\n
Expectations took into account the British government’s plans not\nto impose a tariff on most import categories in the event of Britain leaving\nthe EU without a deal, and also assumed that the Bank of England would cut\ninterest rates.<\/p>\n\n\n\n
Bank of England Governor Mark Carney made widely similar\nestimates for the cost of Britain’s exit from the EU without a deal last month\nwhen he said government and corporate preparations could only ease some of the\ndamage of a possible no-deal Brexit.<\/p>\n\n\n\n
A spokesman for the Ministry of Finance said the government wants\nto leave the European Union deal but is preparing for the United Kingdom\nleaving the EU without a deal.<\/p>\n\n\n\n
The International Monetary Fund (IMF) lowered its forecast for UK\neconomic growth this year to 1.2% from its 1.5% forecast of three months ago,\nwhich would be the weakest since 2009.<\/p>\n\n\n\n
Growth in 2020 saw a rise of 1.4%, but in both years the British\neconomy was expected to grow less than the euro zone, as opposed to before the\nUK’s 2016 exit referendum.<\/p>\n\n\n\n
“The downward revisions … reflect the negative effect of\nprolonged uncertainty about the Brexit outcome, only partially offset by the\npositive impact from fiscal stimulus announced in the 2019 budget,” the\nIMF said.<\/p>\n\n\n\n
The Bank of England should adopt a \u201ccautious, data-dependent\u201d\napproach to monetary policy, the IMF declared.<\/p>\n","protected":false},"excerpt":{"rendered":"
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