{"id":2262,"date":"2018-09-17T09:52:52","date_gmt":"2018-09-17T09:52:52","guid":{"rendered":"http:\/\/www.styledeals.co.uk\/blog\/no-deal-brexit-would-hit-uk-economy-says-imf\/"},"modified":"2018-09-17T09:52:52","modified_gmt":"2018-09-17T09:52:52","slug":"no-deal-brexit-would-hit-uk-economy-says-imf","status":"publish","type":"post","link":"https:\/\/www.styledeals.co.uk\/blog\/no-deal-brexit-would-hit-uk-economy-says-imf\/","title":{"rendered":"No-deal Brexit would hit UK economy, says IMF"},"content":{"rendered":"\n
\n
<\/p>\n

\"ChristineImage copyright<\/span>
\n PA<\/span><\/p>\n

<\/span>

Image caption<\/span>
\n
\n Christine Lagarde was speaking at a news conference at the Treasury
\n <\/span>
\n <\/figcaption><\/figure>\n

The International Monetary Fund has warned that a “no-deal” Brexit on World Trade Organization terms would entail substantial costs for the UK economy. <\/p>\n

Such an outcome would affect “to a lesser extent” other EU economies. <\/p>\n

It said challenges in getting a deal done were “daunting” and warned against further UK interest rate rises. <\/p>\n

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.<\/p>\n

Christine Lagarde, the IMF’s managing director, added: “Those projections assume a timely deal with the EU on a broad free trade agreement and a relatively orderly Brexit process after that.”<\/p>\n

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”.<\/p>\n

‘Geography talks’<\/h2>\n

Speaking at a news conference at the Treasury in London, Ms Lagarde said: “Any deal will not be as good as the smooth process under which goods, services, people and capital move around between the EU and the UK without impediments and obstacles.”<\/p>\n

She said a “disorderly” or “crash” exit from the EU would have a series of consequences, including reduced growth, an increased deficit and depreciation of sterling, leading to a reduction in the size of the UK economy.<\/p>\n

“The larger the impediments to trade in the new relationship, the costlier it will be,” she said. <\/p>\n

“This should be fairly obvious, but it seems that sometimes it is not.”<\/p>\n

She pointed out that countries tended to trade mostly with their neighbours, adding: “I think geography talks very loudly.”<\/p>\n

Ms Lagarde said she “very much” hoped that the UK and the EU would strike a deal, describing herself as “a desperate optimist”.<\/p>\n

UK Chancellor Philip Hammond said the government had to listen to the IMF’s “clear warnings”.<\/p>\n

Recent UK economic data has shown a pick-up in growth. Earlier this month, the Office for National Statistics said the economy had grown by 0.6% over the three months to July – the fastest pace in almost a year.<\/p>\n

The latest IMF prediction represents a slight upgrade for 2018. In July, the IMF said the UK economy would grow by 1.4% this year and 1.5% in 2019.<\/p>\n<\/p><\/div>\n


\n
Source<\/a> by [author_name]<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Image copyright PA Image caption Christine Lagarde was speaking at a news conference at the Treasury 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 … <\/p>\n","protected":false},"author":0,"featured_media":2263,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-2262","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general"],"_links":{"self":[{"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/posts\/2262","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=2262"}],"version-history":[{"count":0,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/posts\/2262\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/media\/2263"}],"wp:attachment":[{"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=2262"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=2262"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=2262"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}