Slow economic growth predicted for two years even if Brexit is ‘orderly’
Economic growth in Britain will remain sluggish for at least two years, according to a report.
The International Monetary Fund predicted GDP growth of 1.4 per cent in 2020 and 1.5 per cent in 2021, stressing: “The growth forecast assumes an orderly exit from the European Union at the end of January followed by a gradual transition.”
Days earlier Chancellor Sajid Javid sparked alarm among business chiefs by ruling out “alignment” with the European Union in a trade deal which the Government is seeking to strike at speed having written into law that the transition period will finish at the end of the year.
The stance has raised fears of tariffs and trade barriers, alongside concerns over the impact on the workforce of an Australia-style points-based immigration system.
The IMF figures show the UK will be growing marginally more than the eurozone, at 1.3 per cent this year and 1.4 per cent in 2021, and ahead of Germany and France.
Global growth is expected to be 3.3 per cent in 2020 and 3.4 per cent in 2021. While there were “tentative” signs of stabilisation, downside risks include the US-Iran tensions.
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