90 pct of economists say Brexit will harm UK economy

Published 17.06.2016 22:10

While investors are concerned about the uncertainty stemming from Britain's possible exit from the European Union, the world's leading economists are divided regarding the impacts of the possible Brexit results from the June 23 EU referendum, with an overwhelming majority thinking Britain should stay in EU. Ninety percent of the economists think a Brexit would damage the economy, and if the U.K. votes to stay, it will be more beneficial to both the British and EU economies. According to a survey published by Britain's Ipsos MORI Social Research Institute, 90 percent of British economists think a Brexit will damage the country's economy. The survey, which included nearly 600 economists, found 88 percent of economists think Britain's withdrawal from the EU would have a huge impact on the export market of the EU and 82 percent think a Brexit would disrupt family incomes in Britain. Speaking to Anadolu Agency (AA), senior economic advisor to Britain's former Prime Minister Margaret Thatcher, also known as "The Iron Lady," and a professor of applied economics at Cardiff University, Patrick Minford, thinks a Brexit would be more beneficial to the country's economy. Standing by Thatcher's side while tough reforms were implemented in the British economy, Minford said: "It is a highly important choice. I think we will do business more freely with the rest of the world after leaving the union. Not so many people realize how protective the EU is."

Minford stressed that if the U.K. leaves the EU it will be able to sign free trade agreements freely with countries outside the EU. Regarding Turkey's membership process that frequently comes to the fore during referendum debates in the U.K., he said: "I think you should not join at any costs. It is a horrible club. Take a look at them. Growth has nearly stopped."

London-based Capital Economics' founder and President Roger Bootle agreed, saying that the EU is moving towards an unknown destination. "Even if there are some uncertainties in the case of Brexit, we know some things well. The EU has been a story of failure over the past ten years." Timothy Ash, London-based head of Central Eastern Europe, Middle East and Africa credit strategy for Nomura International, a Japanese financial holding company, has also warned of the impact the referendum results could have on the global economy. "Britain is a highly systematic economy for the world economy, just like China. This referendum is crucial for Britain, Europe and the global economy. Regardless of the results, the only thing certain is that Europe is in a very tight spot considering the increasingly extreme right, the extreme left and anti-immigration activities." London-based Institution of Financial Services (IFS) Director Paul Johnson said the government may need to implement aesteric policies for one or two years in addition to the current cuts in order to balance the budget.

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