Brexit could cost Bri­tish econ­omy £100b: study

The Pak Banker - - 6BUSINESS -

LON­DON: Leav­ing the Euro­pean Union could cause a "se­ri­ous shock" to Bri­tain's econ­omy, with the risk of los­ing al­most one mil­lion jobs, ac­cord­ing to a CBI busi­ness group study re­leased. A so-called Brexit could cost about £100 bil­lion (128 bil­lion euros, $145 bil­lion) of eco­nomic out­put by 2020 -- equiv­a­lent to five per­cent of an­nual GDP -- the re­search found.

"This anal­y­sis shows very clearly why leav­ing the Euro­pean Union would be a real blow for liv­ing stan­dards, jobs and growth," said Carolyn Fair­bairn, di­rec­tor gen­eral of the CBI.

"Even in the best case this would cause a se­ri­ous shock to the UK econ­omy." An exit could cost as many as 950,000 jobs, ac­cord­ing to the study, mean­ing un­em­ploy­ment would be 2-3 per­cent higher by 2020 than if Bri­tain re­mained in the EU.

The re­search was un­der­taken by ser­vices firm PwC on be­half of busi­ness group the Con­fed­er­a­tion of Bri­tish In­dus­try.

Vote Leave, which cam­paigns in favour of an exit, dis­missed the re­sults, with chief ex­ec­u­tive Matthew El­liott telling the BBC the CBI's sce­nar­ios were "skewed" and leav­ing the EU was the "only safe op­tion". Bri­tain is due to vote in a ref­er­en­dum on whether to re­main a mem­ber of the 28-coun­try bloc on June 23. Opin­ion polls in­di­cate the race is neck and neck with as many as 20 per­cent of vot­ers still un­de­cided, mean­ing the re­sult is very much in the bal­ance.

Newspapers in English

Newspapers from Pakistan

© PressReader. All rights reserved.