The International Monetary Fund has warned that a “no-deal” Brexit on World Trade Organization terms would entail substantial costs for the UK economy.
Such an outcome would affect “to a lesser extent” other EU economies.
It said challenges in getting a deal done were “daunting” and warned against further UK interest rate rises.
The IMF said it expected Britain’s economy would grow by about 1.5% a year in 2018 and 2019 if a broad Brexit agreement was struck.
But IMF chief Christine Lagarde added: “Those projections assume a timely deal with the EU on a broad free trade agreement and a relatively orderly Brexit process after that.”
The IMF said that all likely Brexit scenarios would “entail costs for the UK economy”, but that a disorderly departure could lead to “a significantly worse outcome”.
In July, the IMF said the UK economy would grow by 1.4% this year and 1.5% in 2019.