Member Article

IMF Warns Of No-Deal Brexit Impact

There are rising concerns in both the UK and EU as the prospect of a no-deal Brexit increases.

The IMF has warned of the impact of a no-deal Brexit following a new modelling exercise which simulates the expected disruption to corporate supply chains. The exercise suggests that the EU economy could be impacted by a fall in GDP of up to 1.5 per cent in the long term in the event that the UK leaves the EU without a trade deal, trading only on standard World Trade Organisation terms.

The IMF also warned that economic output for the UK would lose almost 4% of GDP as a result of a no-deal Brexit. Ireland’s economy would also suffer as a result of its strong ties and shared border to the UK.

The news comes as the EU sent out a strong warning to member states over the need to prepare for a no-deal Brexit, following the first meeting between the new Brexit secretary, Dominic Raab, and EU’s chief negotiator, Michel Barnier.

The UK will also be preparing for a no-deal Brexit as the public and businesses will begin to receive weekly information bulletins from the government from next week. The Times newspaper reported that the bulletins will feature information on the best ways to prepare for a no-deal Brexit.

This was posted in Bdaily's Members' News section by Daniel O'Donnell .