British Prime Minister Boris Johnson’s Brexit deal has been slammed by respected British think tank , concluding that the economy would be 3.5 per cent smaller compared with staying in the European Union.
The study by the National Institute of Economic and Social Research says the agreement would deliver a 70 billion-pound (USD 90 billion) blow to the UK Researchers said that the outlook is clouded by political and economic uncertainty.
“We would not expect economic activity to be boosted by the approval of the government’s proposed Brexit deal,” the group said.
The researchers based their prediction on the assumption that the UK would leave the bloc with a free trade agreement with the EU after a transition lasting until 2021 while negotiating new deals with other nations.
It said that higher “barriers to goods and services, trade and restrictions to migration,” would force the economy to slow.
As politicians squabble over how and when Britain will leave the EU, Brexit is reshaping the economy.
Initially planned for March, Brexit was pushed back to Halloween and now is not likely to happen before January.