IMF: Brexit deal needed to help speed up UK recovery
The Brexit trade talks, combined with the COVID-19 lockdowns, will have a strong negative impact on the United Kingdom’s economy through mid-2021 and the period could be prolonged if it takes longer to reach a free trade agreement between the UK and the European Union, the International Monetary Fund (IMF) said on Friday.
In a statement following its Article IV consultation with the UK, the IMF added that the British economy could see a gross domestic product (GDP) jump of 5.7% in 2021 if the economy reopens amid vaccinations. The same scenario puts GDP growth in 2022 at 4.5%.
“As the pandemic subsides, targeted fiscal support using available space could help invigorate growth,” the IMF added. Additionally, the international organization praised the Bank of England’s accommodative policy, including its bond-buying program.
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