The UK and the EU are trying to find ways to break the deadlock over the Irish backstop with just days to go until MPs vote on the Prime Minister’s Brexit deal. Up to three Brexit votes will take place in Parliament next week, as MPs worry about the potential risks of a disorderly Brexit. But as politicians are dealing with turmoil in Parliament, an expert has now revealed how the British economy will flourish post-Brexit.
How will GDP flourish post-Brexit?
Although the pound fell on foreign exchanges following the 2016 Brexit referendum, an expert has said the economy did not “hit the rocks as expected”.
The next moves will depend on whether Brexit is hard, or soft, but the economical benefits the UK will see post-Brexit could be looking to receive a boost.
Richard Mitchell at finance broker Rangewell told Express.co.uk: “The economic developments of the two years and eight months since the EU referendum of June 23, 2016 are continuing to confound all attempts at prediction.
“The economy did not hit the rocks as predicted.
“True, the pound fell on foreign exchanges, but the consequent boom from cheaper exports took the FTSE 100 and 250 to record levels.
“On a ‘total return’ basis (with dividends reinvested) the FTSE 100 has risen substantially, as has the FTSE 250 index.”
Mr Mitchell added how Professor Patrick Minford, one of the UK’s leading macroeconomists, also predicts a boost in the GDP.
The finance broker said: “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 has also been positive about the effect on financial businesses and believes that there are great economical opportunities around the world and that Brussels would be obliged to give full access to EU markets under WTO rules.
Of course, not everyone is happy about the Brexit fallout.
Governor of the Bank of England Mark Carney has stated that the Brexit vote has already knocked about 2 percent off the UK economy, totalling £40bn and costing each household around £900.
Giving evidence to the Treasury Committee, Mr. Carney confirmed the British economy was underperforming the bank’s forecasts before the referendum and that the Leave vote was the primary cause.
The Bank’s current forecast is based on an orderly negotiated Brexit in March 2019, and Mr Carney has said: “A more disorderly transition, or a materially different end state from our assumption, would have implications for monetary policy.”