Worse Than Covid? Risks to U.K. Economy as Brexit Deadline Nears
With the U.K. economy suffering more from the coronavirus than most advanced nations, the stakes couldn’t be higher as Brexit trade negotiations enter their endgame.
Gross domestic product will likely be smaller than what it would have been had the U.K. stayed in the European Union regardless of the outcome. But reaching an accord would help avoid majortrade disruptions come Jan. 1.
Leaving without a deal, meanwhile, means that Brexit could end up inflicting more lasting damage than the pandemic, according to economists. Both sides say the onus is on the other to make a decisive move before the transition ends in just over a month.
The following charts illustrate what’s at stake for the U.K. economy.
205,557 in U.S.Most new cases today
+8% Change in MSCI World Index of global stocks since Wuhan lockdown, Jan. 23
-0.8952 Change in U.S. treasury bond yield since Wuhan lockdown, Jan. 23
4% Global GDP Tracker (annualized), Oct.