UK faces 'significantly worse' outlook if no Brexit deal: IMF

Britain’s economy would face a “significantly worse” outlook if the country leaves the European Union (EU) next year without a deal than if it reaches a Brexit agreement, IMF said on Monday.

The International Monetary Fund (IMF) said it expected Britain’s economy would grow by about 1.5 per cent a year in 2018 and 2019 if a broad Brexit agreement was struck.

In July, the IMF said the economy would grow by 1.4 per cent this year and 1.5 per cent in 2019.

But a more disruptive Brexit would lead to a “significantly worse outcome”, the IMF said in its latest report on Britain’s economy published on Monday.

Britain is due to leave the EU in March next year but London and Brussels have yet to strike a deal to secure a transition period.

Prime Minister Theresa May is hoping to make progress towards a deal when she meets fellow EU leaders this week, reports Reuters.

Britain’s economy—the world’s fifth-biggest—slowed after the 2016 referendum decision to leave the EU and it continues to be outpaced by most other rich nations.

However, stronger-than-expected data last week showed the economy had its fastest growth in nearly a year, helped by the World Cup and hot summer weather.

The IMF said there was a “daunting” range of issues still be dealt with for Brexit and all outcomes of Britain’s departure from the EU would entail costs for the economy.