Quitting the Single Market and restricting immigration will end up wiping billions from economy, Theresa May warned
GDP growth will be at least 3 per cent lower in 2030 than it otherwise would have been if Britain had voted Remain, Oxford Economics said
THERESA MAY was today accused of picking one of the most "economically damaging" Brexit strategies possible by doom-mongering economists.
Oxford Economics said that quitting the single market and restricting immigration would end up wiping billions from output.
GDP growth will be at least 3 per cent lower in 2030 than it otherwise would have been if Britain had voted Remain, Andrew Goodwin, the group’s lead UK economist, said.
The gloomy forecast came just 24 hours after accountants PriceWaterhouseCoopers claimed Britain would be the fastest growing economy in the G7 for three decades. PWC said the UK would “outpace” the US, Canada, France and Germany between 2016 and 2050.
But Mr Goodwin insisted that leaving the single market will cause huge problems for business – and pulling out of the customs union will add huge costs and delays to trade.
And he warned the impact to growth in the long-term will be far worse than 3 per cent if Britain fails to secure a new free trade deal with the EU.
He said: "Over the longer term we think the Government’s chosen path for Brexit is one of the more economically challenging.
"The only outcome that we have studied that would be worse than what the Government has chosen would be us not having a trade agreement at all and falling out on World Trade Organisation terms."
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Oxford Economics added that rising inflation triggered by the low Pound would all-but wipe-out a 2.8 per cent rise in wages this year.
It said: "Exports are likely to do better as a result of the weaker Pound, but overall the negative effects from higher inflation on consumer spending are likely to outweigh these positive effects."
