No-deal Brexit would hit UK economy, says IMF

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IMF chief Christine Largarde

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.



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