Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 66% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

UK economy stands to lose 3.5% of GDP in no-deal Brexit, IMF says

The International Monetary Fund said that the UK economy could lose 3.5% of GDP if it leaves the EU without a deal.

Britain will see its economy lose the equivalent of up to three years of normal GDP growth if it leaves the EU without a deal, the International Monetary Fund (IMF) warned on Tuesday.

The IMF said that even in the event of a relatively orderly no-deal Brexit, would still grow 3.5% less by the end of 2021 compared to if the UK was able to secure a deal.

‘The increase in trade barriers has an immediate negative impact on UK foreign and domestic demand,’ the IMF said.

No-deal Brexit bad news for the EU economy too

Britain is still set to leave the bloc on Friday (April 12) unless the UK Prime Minister Theresa May can agree an extension to Article 50 with EU leaders in Brussels on Wednesday.

Officials in Brussels are expected to grant an extension, with the IMF warning EU leaders that their economies will also suffer if Britain bails out of the bloc without a deal in place.

In fact, the EU economy is forecast to lose 0.5% of its GDP in a no-deal scenario, the IMF said.

IMF downgrades UK economic growth forecast

The IMF downgraded its forecast for economic growth in the UK for 201 to 1.2%, down from 1.5% three months ago – the weakest GDP estimate the country has had in the last 10 years.

‘The downward revisions ... reflect the negative effect of prolonged uncertainty about the Brexit outcome, only partially offset by the positive impact from fiscal stimulus announced in the 2019 budget,’ the IMF said.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

See your opportunity?

Seize it now. Trade over 17,000 markets on our award-winning platform, with low spreads on indices, shares, commodities and more.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Sunday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.


For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of spread betting and CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.