As reported by Reuters, the Confederation of British Industry is warning that a disorderly Brexit will see the UK’s economy risk extreme damage.
Key quotes
The CBI said the world’s fifth-largest economy would grow by 1.3 percent in 2018, 1.4 percent in 2019 and 1.6 percent in 2020, little changed from its previous projections in June. “A no-deal scenario would blow these figures out of the water,” the CBI’s director-general, Carolyn Fairbairn, said, reiterating her organisation’s support for May’s plan.
Last week, the BoE warned that a worst-case Brexit could deal a bigger blow to Britain than the 2008 financial crisis, shrinking the economy by as much as 8 percent in a year.
Before the 2016 referendum, the CBI argued that staying in the EU would be best for Britain’s economy. Whilst the CBI expects real wage growth to recover partially, it predicts living standards will not rise much, due to Britain’s failure to tackle persistently weak productivity.
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