IMF's Gopinath: No-deal Brexit would reduce UK GDP by 3%

Eren Sengezer FXStreet

In the event of a no-deal Brexit, the United Kingdom would lose 3% of its gross domestic product (GDP), Gita Gopinath, chief International Monetary Fund economist, said on Tuesday.

Regarding the impact of the United States (US)-China trade conflict on the global economy, Gopinath argued that the impact of the dispute on global GDP would be reduced if the Trump administration were to suspend October and December tariffs.

"IMF estimates that global GDP would be reduced by 0.6% in 2020 if October/December tariffs do not take effect, instead of 0.8% reduction," Gopinath added. "We do not project recession in baseline in the next several months."

These comments had little to no impact on market sentiment.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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