IMF in stark warning over '˜significant costs' of a no-deal outcome

Leaving the EU without a Brexit deal would inflict 'substantial costs' on the UK economy, the International Monetary Fund (IMF) has warned.

IMF chief Christine Lagarde: Brexit costs exceed savings. Picture: John Stillwell/Pool via AP

In the latest of its regular assessments of the state of Britain’s finances, the IMF said that all likely Brexit scenarios would “entail costs for the UK economy”, but that a disorderly departure could lead to “a significantly worse outcome”.

While new trade agreements made possible by EU withdrawal “could eventually pare some of these losses for the UK”, any such deals are “unlikely to bring sufficient benefits to offset the costs imposed by leaving the EU”, the international economic think tank said.