Following several warnings from organisations about the UK leaving the EU, including IMF and OECD, a collection of eight influential economists who are in support of the Brexit, have claimed that the economy would be better off, with a boost of 4%.
This is the first time that the group, known as Economists for Brexit, have publicly backed the UK leaving the EU.
Authors of the report include Gerard Lyons, a former chief economist at Standard Chartered and now adviser to Brexit supporter, London Mayor Boris Johnson and a former adviser to Margaret Thatcher, Patrick Minford.
Professor of applied economics at Cardiff University, Prof Minford commented about the possible Brexit: “Not negotiating a new agreement with the EU whole getting rid of EU trade barriers will bring about a 4% of GDP gain to the economy, consumer prices will fall about 8% and our hugely competitive services sector will take the place of diminishing manufacturing output.”
He says that the UK would not need a new trade agreement if it left the EU as 70% of exports are traded outside the bloc under WTO rules.
“The remaining 30% would also become subject to WTO rules and would be sold to the EU subject to its general tariffs which average around 4%, in the same way as exports from Japan or the US.”
However, keep Britain in supporters are saying that this would be “the worst possible alternative”. One spokesperson for Britain Stronger in Europe, said: “Treasury analysis shows that trading under WTO rules would be the worst possible alternative to EU membership, seeing households £5,200 worse off and a public spending black hole of £45bn.”