Report: Brexit is not an economic disaster for the UK

National Economic Professor Emeritus Harry Flam goes In Sieps Report With 15 different predictions about how the UK will be affected economically by leaving the EU and instead following the WTO’s international trade rules towards the EU. How they relate to WTO rules depends on whether or not the European Union and Great Britain are able to agree on other rules and tariffs this year.

Flam’s review shows that the negative effects of the WTO path are small and highly uncertain. The difference may be around one or a few percent Gross domestic product Flame writes: In other words, Brexit does not mean a disaster for the British economy.

Statistical effects according to Brexit studies on Britain Gross domestic product It shows a 15-year growth loss of 0.2 to 10.7 percent with WTO rules. The large differences in expectations are due to the fact that the studies partially cover different things.

Among the negative effects discussed by Harry Flam is that customs and administration costs for British companies range from zero to 15 billion pounds annually. Which is nearly twice the UK’s net annual fee as an EU member, Flame says and continues: If London’s financial sector loses the right to operate freely with the EU, its position as a global financial center could be threatened as well.

The Sieps report ends with the comment that it would be desirable to finally be able to clearly and unambiguously define the costs of Brexit. However, most likely, costs remain unclear and the UK will not be able to provide a model for other EU countries that might consider leaving in the future.