UK economy suffers from whatever Brexit scenario, government report says
CGTN’s Joel Richards
The British government issued economic forecasts on Wednesday which showed that Britain could see a 3.9-percent drop in GDP over the coming 15 years under Prime Minister Theresa May's Brexit plan.
The report produced jointly by various departments across the British government including the Treasury modeled several different Brexit outcomes and compared those with the current growth in GDP.
In the event of worst outcome, the No Deal Brexit, which would take place if Britain and the EU did not support the agreement reached between May and the EU, Britain's GDP would decline by 9.3 percent in 15 years' time than if the UK had remained in the EU.
The report said under a Canada-style deal, the UK would be 4.9 percent worse off than remaining in the EU while the most favorable Brexit outcome was seen if Britain had frictionless trade and kept the free movement of people, which would see the economy suffer just a 1.4-percent hit.
If Britain kept frictionless trade but restricted the free movement of people there would be a 2.5-percent decline.