Australia markets closed
  • ALL ORDS

    7,111.40
    +32.50 (+0.46%)
     
  • ASX 200

    6,824.70
    +24.30 (+0.36%)
     
  • AUD/USD

    0.7700
    -0.0013 (-0.17%)
     
  • OIL

    52.90
    +0.13 (+0.25%)
     
  • GOLD

    1,851.90
    -3.30 (-0.18%)
     
  • BTC-AUD

    41,241.96
    -714.42 (-1.70%)
     
  • CMC Crypto 200

    640.97
    -35.93 (-5.31%)
     
  • AUD/EUR

    0.6345
    -0.0004 (-0.06%)
     
  • AUD/NZD

    1.0695
    -0.0017 (-0.16%)
     
  • NZX 50

    13,323.46
    -75.64 (-0.56%)
     
  • NASDAQ

    13,483.29
    +116.89 (+0.87%)
     
  • FTSE

    6,685.24
    +46.39 (+0.70%)
     
  • Dow Jones

    30,960.00
    -36.98 (-0.12%)
     
  • DAX

    13,853.19
    +209.24 (+1.53%)
     
  • Hang Seng

    29,391.26
    -767.75 (-2.55%)
     
  • NIKKEI 225

    28,546.18
    -276.11 (-0.96%)
     

No-deal Brexit to wipe 2% off UK output initially, OBR says

·1-min read

LONDON, Nov 25 (Reuters) - A failure by Britain to agree a free trade deal with the European Union would wipe an additional 2% off the country's economic output initially, the Office for Budget Responsibility said on Wednesday.

The OBR had already forecast that output would fall by 4% in the long run, compared to the country remaining in the European Union, if Britain secures a free trade agreement with the bloc.

It said it had now given a forecast for a no-deal exit given the continued uncertainty over the outcome of the negotiations, with Britain due to leave a status-quo transition period after Brexit on Dec. 31 and the two sides yet to agree new trade terms.

"This would further reduce output by 2% initially and 1.5% at the forecast horizon," it said.

(Reporting by Kate Holton and William James; editing by James Davey)