The International Monetary Fund (IMF) has warned that Brexit will adversely affect the UK economy, alongside the economies of EU member states.
In a recently published report, the IMF stated that there will be ‘no winners from Brexit’.
The report predicts that, if a trade deal cannot be struck between the UK and the EU, the negative macroeconomic effect generated by Brexit will be ‘disproportionately larger’ for the UK, compared to other EU member states.
The IMF suggested that, if the UK leaves the bloc without an advantageous trade deal, EU economic growth could stall by up to 1.5% of GDP, whilst UK economic growth could take a significant hit of almost 4% of GDP.
Consequently, the new Brexit Secretary, Dominic Raab, stated that the government will ‘step up’ its planning for a no-deal scenario in order to ensure that the UK is ready for Brexit.
Similarly, the Financial Conduct Authority (FCA) revealed that it has been working with the Bank of England and the government to make sure that contingencies and safeguards are in place, should a so-called ‘hard Brexit’ occur.
The European Commission has also warned its member states to be prepared for a potential cliff-edge Brexit scenario.