Brexit may lead to big hit for UK, says IMF

Background: EU referendum, Brexit, Britain’s economy, Europe’s refugee crisis, European Union (EU), IMF.

  • The IMF said a vote to exit the European Union in next week’s referendum could leave Britain’s economy more than 5 percent smaller by 2019 than if it stays in the 28-nation club.
  • According to the IMF’s limited Brexit impact scenario, if Britain manages to forge a Norway-style relationship with the EU, its economic output will probably be around 1.5 percent smaller by 2019 than if it stays a full member.
  • Norway is not a member of the EU but it has access to its single market in return for contributing money to the bloc and accepting its freedom of movement principle and some of its other rules and regulations.

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