No-Deal Brexit May Reduce UK GDP Level Up To 5% Over Next 2 Years - IMF

The United Kingdom may experience a significant GDP reduction in the short- as well as long-term if it leaves the European Union without reaching a deal with the bloc, International Monetary Fund Chief Economist Gita Gopinath said in a briefing on Tuesday

WASHINGTON (UrduPoint News / Sputnik - 15th October, 2019) The United Kingdom may experience a significant GDP reduction in the short- as well as long-term if it leaves the European Union without reaching a deal with the bloc, International Monetary Fund Chief Economist Gita Gopinath said in a briefing on Tuesday.

"Our baseline assumes that there will be an agreement and the transition will be smooth," Gopinath told reporters. "[The absence of an agreement] would reduce the level of GDP in the United Kingdom by about 3 percent in the long run and between 3-5 percent in over a two-year period.

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The United Kingdom is set to leave the European Union on October 31. Prime Minister Boris Johnson has insisted that he wants to withdraw the country from the European Union regardless of whether a deal is reached with the bloc.

The UK parliament, which has strongly opposed a no-deal withdrawal, has requested that Johnson seek an extension if a deal with the European Union is not reached by October 19.