IMF says Brexit will permanently lower UK incomes
Bleak verdict is last throw of dice for international economic organisations
A decision by Britain to leave the EU would result in a “negative and substantial” hit to the economy, “permanently lower incomes” and harm the economies of other European states, the International Monetary Fund has said.
In the short term, a difficult exit could push the economy into recession next year and even a relatively smooth transition would have a “material impact”
In the longer term, the damage caused by an extended period of uncertainty and the likely higher costs of trade would be sufficient to wipe out any gains from reduced contributions to the EU, the IMF concluded.
The bleak verdict is a last throw of the dice for the international economic establishment which has been united in its warnings about the risks of Brexit.
In a sign of the concern sweeping capitals as the Leave campaign edges ahead in the polls, Finland’s outgoing finance minister Alexander Stubb, told the FT he feared this could be “the Lehman Brothers moment of Europe”.
“It’s absolutely clear that there would be economic mayhem if the UK were to vote out,” Mr Stubb said.