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IMF: Britain's secession without agreement could cost the EU 1.5% of its domestic output

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rocky
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IMF: Britain's secession without agreement could cost the EU 1.5% of its domestic output

Post by rocky on Thu 19 Jul 2018, 5:32 pm

IMF: Britain's secession without agreement could cost the EU 1.5% of its domestic output






2018/07/19 20:42


(Encyclopedia of this Day News | Iraq News ) - The International Monetary Fund said on Thursday that the European Union will suffer long - term damage , equivalent to about 1.5 percent of annual economic output if Britain left the bloc next year without a free trade agreement.

Britain is due to leave the European Union on March 29, and British Prime Minister Teresa Mae has yet to reach consensus within her Conservative Party about the future relationship with the EU, let alone reach a final deal with the European Union.

The cost of the EU's economic loss if no agreement is reached is about $ 250 billion, according to Reuters calculations based on IMF estimates of the size of the bloc's economy without Britain this year. 

The overall loss of employment may be 0.7 percent of the EU workforce or more than one million jobs.


"The strength of integration between the euro area and the UK means that there will be no winners in Britain's exit from the EU," the IMF said.

A free trade agreement on manufactured goods, which is closer to what Mai seeks, would reduce EU long-term losses to 0.8 percent of GDP or about $ 130 billion.

The IMF did not provide estimates of EU exit costs for Britain in its report, which came in line with a European Union assessment of the IMF twice a year, although earlier this week it lowered its growth forecast for Britain this year to its lowest level since 2012.



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