Brexit BOOST: Economy boosted by BILLIONS – THIS is what will happen to GDP in no-deal
The UK is due to leave the European Union in less than 20 days but Prime Minister Theresa May is yet to strike an exit deal. This week, Britain’s future could be decided as MPs will vote on up to three key Brexit votes. Many worry about the potentials risks of the UK crashing out of the institution across the pond without a deal but a financial expert has revealed a no-deal scenario may not be the worst for Britain’s gross domestic product (GDP).
Professor Patrick Minford, one of the UK’s leading macroeconomists, predicts a major boost in the GDP – boosting the economy by a staggering £140 billion over 15 years.
And he claims lower prices on food, clothing and footwear would help households across the country.
Richard Mitchell, a finance broker at Rangewell, told Express.co.uk the professor was right – and claims the UK will have a wealth of new trade deals available.
Mr Mitchell said: “Professor Patrick Minford is a dissenting voice.
“He predicts a boost in GDP by around 7 percent, thanks to reductions in the EU’s legendary red tape and the new freedom to strike new trade deals.
“According to the professor, the EU has not only been a drag on the UK economy, but it has also made prices around 8 percent higher than they should be for consumers.
“Without a deal, the UK would be free to sign trade agreements.
“Cheaper food would result from imports from global trading partners, while UK businesses would suddenly have access to markets around the world that are effectively denied to them now.
“The professor is even positive about the effect on financial businesses and believes that there are opportunities around the world and that Brussels would be obliged to give full access to EU markets under WTO rules.
Mr Mitchell also said that in theory, the ongoing confusion about the form Brexit will take should not be helping the British economy.
But the facts on exports and imports say differently.
Although the pound fell on foreign exchanges following the 2016 Brexit referendum, the finance broker revealed how the sterling has created an unexpected “export boom”.
He said: “It is the fall in the value of the pound sterling that is behind the unexpected boom.
“The fall in the pound on foreign exchanges meant that imports into the UK became more expensive – but that UK exports were suddenly cheaper for the rest of the world.
“The result was that the UK enjoyed an export boom. The predicted recession simply has not happened.
“Indeed the economy has grown and now, due to the large Brexit devaluation, is experiencing a healthy rebalancing towards net exports.
“By this time last year, the UK was running a current budget surplus for the first time since 2001.”
Source: Read Full Article